Bitcoin Reclaims $30,000 as On-Chain Analysis Points to $40,000 Milestone
The price of Bitcoin (BTC) has surpassed $30,000, recovering from the losses caused by a recent erroneous news report. Several bullish macro events, including Grayscale’s application for a Spot Bitcoin ETF, have contributed to this upward movement. Now the question is whether the bullish investors will push the price to reclaim $40,000.
Rising Bitcoin Dominance Could Push Prices Toward $40,000
Bitcoin’s dominance in the cryptocurrency market has been rising for 10 consecutive days. This is unusual because investors usually diversify into altcoins after BTC reaches a milestone price level. However, due to the skittish macroeconomic landscape and events surrounding the Middle East crisis, investors may be unwilling to diversify this time. This trend suggests that Bitcoin’s “safe haven” status could further accelerate the price rally. If history repeats itself, another 50% bounce could send Bitcoin above $40,000.
Long-Term Holders Have Made Large Acquisitions Since Previous All-Time High
Data from Glassnode shows that long-term holders of Bitcoin have acquired over 3 million more BTC since the previous all-time high in November 2021. Meanwhile, short-term traders’ supply has dropped by more than half. This transfer of wealth from weak hands to resilient investors indicates global confidence in Bitcoin as a safe haven asset. With fewer BTC in control of short-term traders, an increase in Bitcoin dominance and market demand could drive the price toward $40,000.
BTC Price Prediction: The $40,000 Target is Viable
From an on-chain perspective, rising market dominance and long-term holder acquisitions suggest that BTC’s price could move closer to $40,000. However, there are key resistance levels to consider. The Global In/Out of Money data shows that the $30,130 territory is a significant resistance level. A breakout above $30,200 could lead to a larger upswing above $35,000. On the other hand, if the price reverses below $25,000, it could trigger a prolonged downswing.
Hot Take: Bitcoin’s Price Rally Continues with Potential for $40,000
Bitcoin’s price has recovered and surpassed $30,000, driven by bullish macro events and increasing Bitcoin dominance. On-chain analysis suggests that the price could reach $40,000 as long-term holders continue to acquire more BTC and investors show lower risk appetite by staying in Bitcoin. However, there are resistance levels to overcome and a potential downside if the price falls below $25,000. Overall, the market sentiment remains optimistic as Bitcoin maintains its status as a safe haven asset.
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