JP Morgan: Small buyers make up the majority of Bitcoin buyers in the first quarter of 2021

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Bitcoin falls for the fourth day in a row, but so far it is holding above the key supports, which keeps the upward trend. However, it should be recognized that "digital gold" is now becoming much more expensive than they were a couple of months ago. Perhaps the bullish mood among traders and investors has dried up, the influx of new investors may have dried up, and Bitcoin sales may have skyrocketed. One way or another, after the next update of the highs, bitcoin did not continue to move up to $70,000 per coin. It began a new round of correction and is currently aiming for a price value of $52,300. There has been little good news for Bitcoin lately. Recently, it became known that the Indian authorities are planning to completely ban bitcoin on the territory of their country. Bill Gates is constantly criticizing "digital gold." More and more scientists are paying attention to the "non-ecological" nature of BTC. But there is no good news for bitcoin. Yes, cryptocurrency continues to be popularized among investors and traders of various stripes and categories. Yes, more and more banks and payment systems provide services for storing and moving cryptocurrencies. But at the same time, none of the major companies after Tesla and MicroStrategy made more statements about investing in Bitcoin. Thus, the number of institutional investors continues to grow, but they are clearly not large companies that would make appropriate statements. According to JPMorgan, retail investors bought more bitcoin coins in the first quarter than institutional investors. The difference between the volumes of purchases is small, but it was still individuals who invested in bitcoin more often in the first three months of 2021. It is not known how many small investors are among them, but we can imagine that there are quite a few. Thus, bitcoin once again becomes dependent on the public opinion of small investors. Maybe not as much as three years ago, but still. If most small traders decide to get rid of bitcoin, then its rate can sink by 50% or more. Who knows what might happen when a lot of small investors or traders unite, like what has already been shown at the beginning of the year by the Reddit community on the example of the GameStop game store shares.

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As for the technical picture, Bitcoin quotes are currently striving for the first serious support - the Kijun-sen line, which lies at the level of $52,300. A clear rebound from this line may already trigger a new upward movement, but it seems that this time the cryptocurrency has more desire to decline into the area of $43,000-44,000 per coin, where there is another strong support area. Much will depend on the Kijun-sen line in the coming days.

The material has been provided by InstaForex Company - www.instaforex.com

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