Despite recent Bitcoin top, here’s why it’s the right time to buy

It has been 4 days since bitcoin came close to taking out the $16,000 level. While it seems like the price is done and it won’t push any further, it isn’t and a metric that considers the mean exchange inflow has lit up the “buy” signal.

Crypto Quant’s CEO Ki Young Ju tweeted,

“The $BTC buy-the-dip indicator says we’re still in a strong buy zone… After the price plunge, there have been subsequent exchange inflows by whales…”

This does seem too good to be true, so let’s take a close look at this “buy-signal”.

As the author of the tweet explains, there are two reasons why exchange inflows would spike

Out of the above two, I think the first is happening, however, we can see that the retail buyers aren’t done buying bitcoins. The proof for this can be split into two

This surge in retail demand seen on CME is happening when CME’s OI is taking a jab at the previous ATH of $939 million. This shows that there is an actual volume backing the retail demand. In a previous article, we’ve already talked about how the recent rally was due to retail and high net worth individuals.

Yes, this is a good time to buy, if it is a long term investment. However, if you are doing it for the short term, perhaps, wait for a small pullback up to $13,500.

Bitcoin’s price has hit a point that feels like the start of a bull run or perhaps the pre-bull run. Companies are prospering, bitcoin fundamentals are strong, miners are happy, so, the network and the ecosystem as a whole are performing well. Hence, buying now for a long term hodl would be a good decision.