Amidst resistance at $70,000, Bitcoin surges to its highest point since March 15th, driven by capital inflows into spot ETFs and investor accumulation. Support around $64,000 fuels optimism, while key indicators suggest that participants are preparing for a sustained rally, including increased wallet holdings and decreased exchange deposits.
Bitcoin Marches Towards $70,000 Threshold, Accumulations Signal Sustained Rally
In the face of a formidable $70,000 resistance level, Bitcoin is exhibiting resilience and amassing strength for a sustained rally, fueled by unwavering institutional demand and bullish sentiment.
On March 26, Bitcoin breached the $71,000 mark, reaching its highest point since March 15. This surge was driven by consistent inflows into spot Bitcoin exchange-traded funds (ETFs) and anticipation surrounding the upcoming halving event.
Behind-the-scenes data from the blockchain reveals that large investors are accumulating Bitcoin at an accelerated pace. Sentiment, a data analytics provider, reports a surge in wallets holding between 1,000 BTC and 10,000 BTC, rising from 23% to 25.17% year-to-date. Similarly, wallets with balances between 10,000 BTC and 100,000 BTC witnessed a spike from 11.68% to 12.42%, before settling at 11.98%.
This accumulation is corroborated by a decline in Bitcoin deposits on exchanges, signaling a reduced intent to sell. Whale transfers from exchanges to self-custody wallets have surged, with notable transactions including the movement of 2,400 BTC ($169.5 million) from Coinbase to an undisclosed wallet and the withdrawal of 4,797 BTC ($339 million) to an unknown destination.
The approaching Bitcoin halving, which is scheduled for April, is also fueling price momentum. Glassnode, a blockchain analytics firm, projects that the buying power of Bitcoin ETFs will overshadow the supply squeeze typically associated with halving events. Analysts emphasize the importance of monitoring the activity of long-term holders (LTHs), as their decisions can significantly influence market sentiment and liquidity.
Despite the strong resistance at $70,000, IntoTheBlock, a crypto market intelligence platform, indicates robust support around $64,000. This suggests that Bitcoin has the potential to regain its stride and challenge the $70,000 level once more.
Traders are now focused on maintaining Bitcoin above $70,000 and have identified $100,000 as a key target for the price. The trajectory of Bitcoin's rally will depend on the interplay of institutional demand, the accumulation by large investors, and the technical indicators shaping price action.
