Bitcoin’s climb is being challenged by a shaky $70,000 resistance level, but blockchain data indicates that participants are preparing for a sustained uptrend. Recently, Bitcoin surged above $71,000, reaching its highest point since March 15, driven by capital inflows into spot BTC exchange-traded funds (ETFs).
On March 26, Bitcoin saw a 0.55% increase over 24 hours, hitting a weekly peak of $71,582. Factors contributing to this surge include consistent inflows into spot Bitcoin ETFs, anticipation surrounding the upcoming Bitcoin halving, and positive sentiment among institutional investors.
A key factor in Bitcoin’s surge is the accumulation by large investors. Sentiment data shows an increase in wallets holding between 1,000 BTC and 10,000 BTC, rising from 23% at the start of the year to 25.17%. Similarly, wallets holding between 10,000 BTC and 100,000 BTC increased from 11.68% to 12.42% before stabilizing at 11.98%.
This accumulation is supported by a decrease in BTC deposits on exchanges, indicating a reduced willingness to sell. Instead, there has been a rise in whale transfers from exchanges to self-custody wallets. Notably, one holder moved 2,400 BTC ($169.5 million) from Coinbase to an undisclosed wallet, while another withdrew 4,797 BTC ($339 million) to an unknown destination.
The anticipation surrounding the upcoming halving event is also boosting Bitcoin’s price. Glassnode predicts that ETF buying power will outweigh the traditional supply tightening expected from the halving, scheduled for April. Analysts stress the importance of monitoring the actions of long-term holders (LTHs), whose decisions can have a significant impact on market liquidity and sentiment.
As the halving approaches, traders are keeping an eye on Bitcoin’s next price target. Despite facing resistance, data from IntoTheBlock shows strong support around $64,000, indicating momentum for Bitcoin’s rise back to the $70,000 range.
Traders are now focused on keeping Bitcoin above $70,000, with $100,000 emerging as a crucial price target.
Featured Image: Freepik
Please See Disclaimer
