After a series of price drops the previous week, Bitcoin experienced a notable bounce back. This recent trend caused Bitcoin to surpass a vital threshold, leading investors to feel hopeful as we approach another significant Bitcoin event – the halving.
According to a recent analysis by CryptoQuant, several important reasons explain why Bitcoin’s price remains around $72,000 and continues to trend upward.
Why is Bitcoin Recovering?
Bitcoin climbed back up above $72,000 after several weeks of mostly decreases, marking its first rise to that level since mid-March. Multiple reasons contribute to this rebound.
Last week, when Bitcoin reached $65,500, it appeared that the price correction was nearing its end. This was indicated by over $2.7 billion in profits being made, potentially signaling an end to the market’s downturn. Furthermore, short-term sellers began to halt their losses from the correction, reducing the overall selling pressure.
Additionally, the creation of new USDT units occurred at a time when there was a significant connection between the market value of the leading stablecoin and the price of Bitcoin, adding fuel to the optimistic outlook.
A significant amount of Bitcoin has been flowing into storage addresses, reaching a record high, suggesting growing enthusiasm from long-term investors.
In conclusion, there have been notable changes in investor behavior recently. Long-term investors have shown a decreased tendency to sell, suggesting they are more committed to keeping Bitcoin in their portfolios. This, along with other positive factors, points towards a promising future for BTC‘s price growth.
Confident cryptocurrency analysts believe the recent Bitcoin price surge could last. If Bitcoin holds above $70,800, it may reach a new high of $85,000, as suggested by analyst Ali Martinez.
More Bitcoin Bullishness?
Last Friday, QCP Capital shared an update indicating a rising optimism towards Bitcoin among investors, even though its price remained confined within a narrow band during the previous week.
One observation is the rise in investments into Bitcoin ETFs, with notable surges occurring recently. The support from established financial institutions like Citadel, Goldman Sachs, UBS, and Citi becoming Authorized Participants for Blackrock’s ETF has bolstered confidence in Bitcoin as a legitimate asset class.
Furthermore, there’s been significant demand from traders to buy Bitcoin call options. This trend indicates a strong preference for Bitcoin in the markets. At the same time, reduced Bitcoin leverage is evident from the absence of large perpetual funding rates and a less steep future price curve, suggesting a more stable market situation.
Most importantly, the upcoming Bitcoin halving narrative further added to the positive outlook.
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2024-04-08 17:26