The Bitcoin Market: Ready for Another Bull Run?
The Bitcoin (BTC) market is showing numerous bullish indicators, with a consistent increase in the number of wallets holding at least 1,000 BTC over the past five days. Additionally, the supply of BTC on Coinbase has dropped to its lowest point since 2018, indicating a significant withdrawal of Bitcoin from exchanges. These factors, coupled with technical momentum in the form of short-term Exponential Moving Average (EMA) lines surpassing long-term lines, suggest that a potential bull run may be on the horizon.
๐ Whales are Building Up Their Bitcoin Holdings
- The number of Bitcoin addresses holding 1,000 BTC or more has risen from 1,491 to 1,617 between January and March, reaching the highest level since February 2021.
- This surge in whale activity, particularly in the last five days, indicates a strong accumulation by major players and hints at a potential upcoming bull run in the market.
Whalesโ Actions as Market Indicators
- Whalesโ aggressive acquisition of Bitcoin is often seen as a positive market signal, suggesting that influential players are anticipating a rise in BTCโs price trajectory.
- This behavior can boost confidence among retail and smaller institutional traders, potentially leading to increased market participation and price growth.
๐ Supply Squeeze on Coinbase
- The supply of BTC on Coinbase has steadily decreased to 304,000 BTC, hitting its lowest level since 2018.
- This reduction in supply signals a scarcity of available Bitcoin for trading and purchase on one of the largest US exchanges.
Implications of Decreased Supply
- A constrained supply often precedes a price increase, indicating increasing competition among buyers and a shift towards holding rather than selling Bitcoin.
- This scenario, combined with whale accumulation and decreased supply on Coinbase, sets the stage for a potential bull run in BTCโs price.
๐ BTC Price Predictions: Setting New Records?
- The BTC 4-hour chart shows a bullish signal with a short-term EMA line crossing above a long-term EMA line, suggesting a rise in buying pressure.
- This crossover could indicate a strong upward trajectory, potentially propelling BTC towards a new all-time high (ATH), especially with the Bitcoin halving on the horizon.
Potential Scenarios
- If the uptrend continues with high investor confidence, BTC could reach a new ATH, surpassing the current record of $73,797.35.
- However, if market factors introduce uncertainty and buying pressure wanes, thereโs a possibility of BTC retracing to lower support levels, potentially around $60,000.
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