Top Reasons Bitcoin (BTC) Price Upward Movement Signals Another Bull Run
As the global crypto market tries to make a recovery after a recent downturn, Bitcoin (BTC) defies the trend, showing signs of potential upward movement. Currently priced at $68,247.33, the largest cryptocurrency by market cap is gaining the attention of both investors and analysts. Having reached an all-time high of $73,750.07 on Mar 14, 2024, and only 7$ from regaining the milestone, we explore top reasons why BTC price upward movement might signal another significant bull run.
1. Whale Accumulation Echoes 2020 Trends
CryptoQuant CEO Ki Young Ju has made strong comparisons between the current Bitcoin market behavior and that of mid-2020. In a recent analysis, Ju observed high levels of on-chain activity and significant accumulation of whales despite low price volatility.
This mirrors the accumulation phase seen in 2020 that resulted in Bitcoin surging to $64,000 by April 2021. Presently, whales are gradually amassing Bitcoin in a way that indicates a positive trend may be upcoming.
2. Increased Institutional Investment and ETF Inflows
There has been strong inflow of funds into Bitcoin exchange-traded funds (ETFs), with notable net inflows seen for several days in a row. As an example, Bitcoin spot ETFs received a net inflow of $48.706 million on May 30, continuing thirteen days of consecutive positive net inflows.
The Bitcoin ETF from Fidelity (FBTC) experienced a one-day increase of $119 million in investments. The continuous inflows highlight increasing institutional interest and confidence in Bitcoin as a mainstream financial asset, which could lead to additional BTC price increases.
3. Tether’s Strategic Moves
The rise of BTC price can also be attributed to the crucial role played by Tether, the issuer of the USDT stablecoin. According to Lookonchain data, Tether issued additional $1 billion worth of USDT, pushing its market capitalization to over $110,000. The surge in liquidity experienced by the crypto market has been linked to the rise in BTC price from $27,000 to $73,000.
Moreover, the decision of Tether to invest 15% of its net profit into Bitcoin, strengthens its impact. Tether holds more than 78,317 BTC, translating to over $5.18 billion in value.
4. Historical Parallels and Bullish Patterns of BTC Price
Today’s Bitcoin market behavior is similar to past bullish periods. Analysts at Glassnode believe that the current lack of volatility near previous record highs is seen as positive price movement.
Drawing parallels between the current market trends and the 2015-2017 bull market, during which Bitcoin saw substantial accumulation and subsequent price increases, offers hope for another possible rally.
Over the last five months, big Bitcoin wallet holders have raised their holdings by 154,560 BTC, showing a notable increase in re-accumulation and demand.
5. Market Sentiment and Predictions
The crypto community is portrayed with mixed sentiment, although mostly positive. Crypto experts assert that Bitcoin is facing its final resistance near $69,000, before potentially eyeing new all-time highs.
Should Bitcoin break above strong resistance between $72,000 and $74,000, then it triggers short-squeeze, thereby propelling BTC price to levels never seen before. Some analysts predict the possibility of Bitcoin reaching $75,000 or above, if it can rise above these resistance levels.
Current BTC Price Action
BTC has been trading between a low of $67,737.01 and a high of $69,500.54, settling at $68,183.51. This demonstrates an increase of 1.37% in its value over the past day.
Conclusion
Despite the recent market crash impacting the overall cryptocurrency market, Bitcoin’s strength and positive underlying indicators offer a promising outlook. The presence of large whales, the investment of major institutions, strategic actions by key players such as Tether, and past trends all indicate the possibility of a notable bull market resurgence. While Bitcoin navigates resistance levels, analysts and investors are giving its future direction an optimistic outlook. Whether BTC price will achieve new peaks remains to be witnessed, however, the current indicators point towards a forthcoming upward movement.
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