Retail investors disappeared as quickly as they arrived!
Analyzing the 30-day variation in retail demand (transactions between $0 and $10K) provides valuable insights into the behavior of this investor category.
As BTC approached $100K, retail demand variation surged by over 30%.
Historically, when retail demand variation exceeds 15%, it often precedes a local top. This was exactly what we observed after BTC reached its new all-time high at $108K.
Following the slight correction that ensued, retail demand plummeted sharply to -16%.
When this variation falls below -10% it means that retail interest drops significantly,it often creates an ideal buying opportunity as a bullish reaction has frequently followed.
However, these observations should be put into perspective, as a measured increase in retail demand remains a positive sign for the market.
Written by Darkfost
