Bitcoin retail purchase rates have soared lately. These statistics show how much Bitcoin retail investors buy and at what prices they buy these tokens. Now, this stat had hit an earlier record high in 2017/2018, right at the peak of the bull market at that time. As the same thing happens again and retail investors ramp up their purchases, it remains to be seen whether this will correlate with another bull rally that sends the digital asset to a new all-time high.

Retail investors soar

In a chart posted to Twitter, market analyst Will Clemente showed that retail investors are currently buying the cryptocurrency at the second-highest rate in history. This is significant when viewed from the perspective of the last time retail purchases rose past this point. However, it does not only mean good news, even from a historical point of view.

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Clemente noted that most spikes in private investor holdings tended to coincide with those of macro tops. However, there have also been times when these investors have taken a more strategic approach to their purchases. On this one, the analyst explains that it is an outlier.

This is a very interesting chart. Retail (0-1 BTC) is currently buying at the second highest rate in Bitcoin history.

Looking at retail holdings, most of the spikes coincided with macro tops, but on several occasions they have bought strategically. This peak is an outlier. pic.twitter.com/PcGxsoCVku

— Will Clemente (@WClementeIII) Apr 4, 2022

Most importantly, there is no clear indication of where the price could move in response to this. Not only could it be a bullish signal that precedes another top, but it could very well lead to another bottom.

“Either we are doomed or the retail industry has chosen to use Bitcoin as a savings account and opt out of the fiat system,” said Will Clemente. “The optimist in me hopes it’s the latter.”

Bitcoin ready for another rally?

Bitcoin halving events have also led to an increase in the value of the digital asset. However, there are events in the middle of the halving that can also be significant for the price of the digital asset. Usually after a halving, the peak is reached between 515 and 545 days after. So far, bitcoin has moved past this point as the new year ushered in, meaning the next major event was halfway through the halving.

BTC drops to $45k | Source: BTCUSD on TradingView.com

This event could have serious consequences for digital assets if history is to be believed. The latest mid-halving event saw the price of bitcoin drop dramatically after July 2018. It’s no secret that what followed was a drawn-out bear market.

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🤑 The last one #Bitcoin halving occurred in May 2020. After peaks, price peaks historically occur 515 to 545 days afterwards $BTCThe supply is halved, which creates more scarcity. Next week we have a mid-halving event. Read what is happening historically! https://t.co/qvBoQHfxhL pic.twitter.com/eTp9cDNgoO

— Santiment (@santimentfeed) Apr 4, 2022

With the current market momentum, bitcoin appears to be holding onto this pattern historically as it failed to break through the $50K resistance point. Holiness notes that the next mid-halving event will be on April 11. So BTC will either have to rise above this next resistance or risk a downtrend which could see it drop to $30,000 again.

Featured image of The Crypto Basic, chart from TradingView.com