Investors are holding Bitcoin in anticipation of a bull market in 2021

data across cryptocurrency exchanges show a rise in currency holdings among individual investors in Bitcoin digital currency (BTC) who expect the world's most popular and most expensive currency to rise during the first quarter Next year (2021).

According to the Coin Telegraph report, the new data shows that the current price action of Bitcoin digital currency (BTC) is showing higher levels of holding activity compared to previous bulls.

and according to string analyst Willie Wu, the index named reflectivity has increased in recent months.

Wu explained that the index measures the tendency of Bitcoin investors to stick to Bitcoin as its price rises. It is essentially an alternative method of measuring currency holding activity among individual investors.

There are many reasons why individual investors are holding Bitcoin more heavily than in previous upward cycles, if Bitcoin rallies in 2021, most investors will see it as a bullish rally After bisection.

Historically, Bitcoin rose 12 to 15 months after each run, hitting an all-time high every time. Depending on Bitcoin's tendency to rise after the halving, individual investors may reserve as a strategy to avoid being missed if a strong and sustained rally begins.

Bitcoin has also shown an amazing level of flexibility during the multiple potential catastrophic events. After the initial recovery from the crash caused by the epidemic in March, the price remained above $ 10,000 despite several negative events.

More recently, Bitcoin's price plummeted after the US Commodity Futures and Commodities Trading Authority (CFTC) charged Bitmex with violating bank secrecy law.

and after the Authority's announcement, Bitcoin's price fell below $ 10,500, but quickly recovered to the $ 10,700 support level.

and according to Wu, this may be due to the convergence of two main factors. This [reversal] is the tendency of currency holders to hold onto their currencies stronger as prices rise, Wu explained. I had been expecting an increase in the reversal during the obsessive phase of the rally markets, but it looks quite steady from the last two cycles ... this cycle is interesting; The reversal rate is increasing rather than steady compared to previous cycles. While we now need more invested capital to obtain similar price gains, the effect of holders increases the number per dollar ...