Bitcoin (BTC) has reached a closing price above $70,000 on Monday for the first time since March 15. This has caused some analysts to predict that the coin is heading towards a new all-time high. The surge in BTC price is attributed to significant accumulation by stakeholders. As of now, the coin has experienced a 3.9% increase within the last 24 hours.
According to Santiment, a cryptocurrency analytics platform, wallets with holdings ranging from 10 to 10,000 BTC acquired a total of 51,959 Bitcoin in just one day. This means that 0.263% of the entire coin supply was accumulated within 24 hours, and it is the reason behind the price surge.
Traders were surprised by the sudden rise of Bitcoin to $70,000. It was reported that important Bitcoin stakeholders had one of their biggest accumulation days in years, leading to the abrupt spike.
On Sunday alone, wallets containing between 10 and 10,000 BTC amassed 51,959 bitcoins. This translates to the accumulation of 0.263% of the current available supply in just one day. As we approach the final three weeks before the halving on April 19th, it would not be surprising to see these wallets grow, which could have a positive effect on the market caps for all cryptocurrencies.
However, it is important to note that the holdings of USDT and USDC related to whales and sharks cannot be sacrificed in the name of this ongoing accumulation. Their ability to exchange for additional currency at any given time depends on their dry powder, which is a fundamental component.
Ali, a well-known technical analyst with a large following on X (formerly known as Twitter), has predicted that Bitcoin's consolidation phase below its all-time high is coming to an end. The cryptocurrency has experienced a correction of around 17.5% from its peak, similar to what was observed in 2020 before a significant uptrend followed. According to Ali's analysis, BTC appears to be breaking out of an ascending triangle on shorter time frames, which could potentially push it towards the $71,800 mark, as long as the support level at $70,400 remains firm.
In a separate analysis, Rekt Capital examined the similarity between BTC's 2020 pre-halving pullback and the current pullback. He offered his perspective on the potential market behavior and sentiment surrounding the halving event, suggesting that the current pullback could indicate a similar market trend to what was seen in the previous halving. Therefore, if this pattern repeats, we may see another surge in the coin's price, similar to the 2020 scenario.
Reflecting Rekt's analysis, Ash Crypto, another prominent analyst with over 1 million followers on X (formerly known as Twitter), suggested that Bitcoin is breaking out of a bullish pattern, which could potentially push it towards $100,000 if the support remains strong. As the coin's consolidation below its all-time high is coming to an end and it has corrected by approximately 17.5% from its peak, the pattern mimics the one seen in 2020 before its next significant uptrend.
Seth, a prominent crypto analyst, speculated that BTC tends to benefit from high liquidity and may reach $75,000, where short liquidations are concentrated. He proposed two scenarios: If Bitcoin is rejected at $75,000, it may retreat to the $60,000-$75,000 range. If it surpasses $75,000, it could continue to climb higher, potentially reaching $80,000 or even $100,000 before entering a consolidation phase.
As the Bitcoin halving event on April 19th approaches, there may be a trend of accumulating Bitcoin. This event has historically caused price increases by reducing the supply of BTC. Balancing the involvement of mid-level investors and maintaining sufficient liquidity reserves held by major players could lead to a prolonged bull market and increased acceptance of BTC and other cryptocurrencies in the mainstream.
Analysts have discussed Bitcoin's bullish rally and price projections, with Aurelie Barthere from Nansen suggesting that the Federal Reserve's end of rate hikes likely contributed to its rebound since November 2023. Barthere also noted that financing conditions have loosened since November last year, and investors are optimistic about macro prospects, with the risk premium linked to potential growth shocks decreasing. Some analysts do, however, caution against potential short-term corrections. The CEO and founder of Kbit, a cryptocurrency hedge fund, Ed Tolson, told CNBC that the market is ready for a quick fall at any time, "possibly between 10% and 20%," which would result in enormous liquidations. Long-term, nevertheless, the analyst is still optimistic.
BTC is currently trading at $65,884, over 7% less than its all-time high of $69,170, as of this writing. Nonetheless, the excitement surrounding Bitcoin's milestone in the cryptocurrency market is still present on crypto Twitter.