Bitcoin Well stock suggests that the pre-half BTC rally will continue
The price of Bitcoin (BTC) rose above $71,000 for the first time since March 15 as capital poured into the space's BTC exchange-traded funds (ETFs).
According to data from Cointelegraph Markets Pro and TradingView, BTC has gained more than 0.55% in the past 24 hours, hitting a weekly high of $71,582 on March 26.
A number of factors are fueling BTC's current price movement, including the consistent position of Bitcoin ETF earnings, the upcoming Bitcoin halving, and generally positive investor sentiment among institutional investors.
In the year Let's take a look at the reasons behind Bitcoin's rally on March 26.
Bitcoin Wales collects more BTC
Large Bitcoin investors are adding to their holdings in anticipation of future price increases. Data from market intelligence firm Sentiment shows that the percentage of wallets holding between 1,000 BTC and 10,000 BTC increased from January 1 to 25.17% on March 26.
As shown in the chart below, the percentage holding between 10,000 BTC and 100,000 BTC rose from 11.68% on March 21 to 12.42% before dropping slightly to 11.98% now.
Bitcoin Well stock is supported by reducing BTC deposits on exchanges. According to Glassnode data, on March 5, when the price of BTC increased above $ 69,000, the number of deposit transactions to popular wallets began to decrease. This decline was reduced on March 19, although the price fell more than 9% on the day to close below $ 65,000, the deposit exchange decreased from 109,420 transactions to 55,505 on March 25.
Declining transfers of BTC to exchanges indicate a lack of interest in selling, which is generally a bullish sign.
Instead, the number of whales transferring bitcoins from exchanges has increased. On March 11, blockchain monitoring and analytics company Whale Alert reported several transactions transferring large amounts of BTC from exchanges to self-sustaining wallets.
On March 25, a holder transferred 2,400 BTC worth $169.5 million from the Coinbase crypto exchange to an unknown new wallet.
Another whale transferred 4,797 BTC from Coinbase to an unknown wallet, about $339 million.
The upcoming halving event will increase the value of Bitcoin
In a recent report, market intelligence provider Glasnode said, “significant purchasing power of ETFs is set to offset the expected effects of a traditional supply glut,” with Bitcoin futures set for April this year.
Glassnode analyst Marcin Milocierni wrote: “Bitcoin supply volatility is increasingly driven by the actions of long-term holders (LTHs).”
Milosierni advised traders to “closely monitor” the movement of LTHS, as “the decision to sell or hold can significantly affect the volatility and sentiment in the market.”
The analyst added:
“Achieving the ATH before the halving would indicate a new trend, but the cycle's advance coupled with the April 2021 ATH would indicate past trends. “
As the name suggests, a Bitcoin supply halving is an event where the reward for issuing new blocks on the Bitcoin blockchain is cut in half. After the next halving, the BTC rewards given to miners per block will decrease from 6.25 BTC to 3.125 BTC.
Crypto trader and analyst Rect Capital was founded in 2015. In a March 25 post on X's social network, X shared a chart showing the “Bitcoin Halving 4 Phases,” saying, “The current cycle is the history of the rally range,” adding that “the possibility of a price halving is further consolidation at the highs” – “the regrouping territory.” stock” level.
As Bitcoin's halving approaches, investors are rushing to position themselves for the event.
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Traders are focused on Bitcoin's next price level.
Bitcoin traders and analysts are now focusing on the next level for BTC after its return above $70,000. Data from IntoTheBlock shows that when the price dropped to $64,000, whales raised more than 80,000 BTC. According to a blockchain analytics firm, this buying appears to be the impetus “behind Bitcoin's return to the $70k range.”
The company's In/Out of the Money Around Price (IOMAP) model has BTC sitting at relatively strong support around $64,000 compared to resistance on the recovery path.
What is clear is that traders are determined to keep the price above $70,000. According to independent analyst Daan CryptoTrades, investors should be prepared for a “crazy” rise as USD 100,000 is the focus for the price of BTC.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
