Compared to past cycles, the uniqueness of this round of Bitcoin market is that no matter what height the price is at, there is always someone willing to take over and buy. Two main sources of capital are at work behind this.
The first category is 'new buyers'. They are mostly new players entering the market for the first time, representing a continuous influx of new funds and new users. The second category is 'belief buyers', who are long-term active players in the market. They choose to increase their positions when prices drop, continuously buying to lower their costs.
These two groups not only support the market but also largely determine the bottom line for Bitcoin's pullbacks.
Looking back at the recent market, since the market weakened on August 13, market sentiment has gradually turned cautious and even somewhat pessimistic. However, data shows that even during this wave of decline, new buyers have still purchased about 106,000 BTC.
(Figure 1)
At the same time, belief buyers have increased their holdings by about 131,000 BTC.
(Figure 2)
Currently, there are still a large number of long-term holders in the Bitcoin network, who hold substantial unrealized profits. When prices reach new highs or experience a pullback, many choose to cash out partially. However, it is precisely because of the continuous support from new buyers and belief buyers that the price of Bitcoin remains at its current level, rather than being rapidly driven down.
