- Bitcoin maintains its position over $30,000 for a second consecutive day, as long-term holders continue to accumulate.
- On-chain statistics and whale behaviour indicate that huge transactions drove the recent BTC price rebound.
Bitcoin (BTC) is fighting to remain over $30,000 for the 3rd consecutive day, following 9 consecutive weeks in red. Bulls concentrated on recouping losses during the current relief rally. As they prepare for the next bull run, it seems that long-term investors are not frightened of the down market since it is one of the ideal periods to uncover fundamentally sound businesses.
Let’s analyze some of the reasons for this optimistic Bitcoin forecast.
1. In-range accumulation
BTC’s horizontal price movement was seen as a chance by long-term investors, even if many investors had lost interest in it. These findings were backed up by Glassnode’s Bitcoin accumulation score. In the previous two weeks, as seen in the graph below, the trend has reverted to a near-perfect score of over 0.9.
Existing units on the networks seem to be significantly expanding their holdings as a result of this development. Since January and April, there has been a noticeable increase in accumulation. Moreover, this is a good indication for Bitcoin supporters.
To put this in context, addresses with less than 100 BTC and those with more than 10,000 BTC have been the primary drivers of the current accumulation. There was a 700-fold surge in the number of addresses with less than 100 BTC during the current volatility.
A total of 10 addresses were created by whales with more than 10,000 BTC during this time period. There is a growing confidence in the price of the leading cryptocurrency, as shown by a growth in the number of significant investors
2. Bitcoin Whales Are Active
There seemed to be a strong correlation between Bitcoin’s rise in value and institutional and whale activity. Large on-chain transactions involving transfers over $100,000 have climbed from 13,740 to 29,620 according to data collected by IntoTheBlock in the previous two days. An increase in their BTC holdings might be in order, given the recent uptick in price.
BTC Large Transactions
3. Bullish Setup Present in the Bitcoin Price Action
Support for Bitcoin’s downward movement is stronger now that it has crossed above the 50- and 100-period SMAs. An indicator known as the Moving Average Convergence and Divergence (MACD) was also pointing to an upturn in market sentiment.
On Monday, the Suptertrend indicator issued a buy signal for Bitcoin. When this chart overlay indication went from red to green and flipped below the price, this happened. The optimistic perspective will remain unchanged as long as this signal closes below the price.
In contrast, the Relative Strength Index (RSI) was declining, indicating that Bitcoin had been overbought. This indicated a potential decline in the near future. If this occurs, BTC might fall below the $30,000 threshold, where accumulation would continue for a period.
Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.