Bitcoin (BTC) price has finally surpassed the $45,000 psychological barrier nearly after two months time period. However, as predicted, the price has retraced from the resistance level after making a high of $45,104.07. Will Bitcoin see more downfall here? The recent data including on-chain data, price action, whale activity, and indicators suggest otherwise. Moreover, the Bitcoin sentiment remains positive.
Bitcoin (BTC) Builds Bullish Momentum
Over the past few months, Bitcoin had been rangebound between $35,000 and $45,000. However, since bottoming out near the $37,000 level on March 14, the Bitcoin price has been moving up in an ascending channel, rising almost 20% in two weeks. The BTC price has retraced, but the $44,000 level looks like a support level for the short-term. Therefore, the BTC price action suggests bullish momentum as long as the price remains in the channel.
According to data from on-chain analytics firm Glassnode, on-chain transaction volume and trading volume on exchanges for Bitcoin are higher between $42k-$45k levels. Moreover, the next crucial on-chain resistance for Bitcoin is at $45,900, the short-term holder realized price.
As per Bitcoin supply distribution data from Santiment, the amount of Bitcoin addresses holding 1k-10k bitcoins has increased by 8.3% this month.
Data from IntoTheBlock shows growing bitcoin adoption as the number of addresses holding BTC has surpassed 40 million for the first time ever this month.
Thus, the on-chain data suggests that the BTC price movements are different this time as the outflow from exchanges is increasing and adoption growing. Thus, on-chain data depicts fewer chances of retracement and points to a rally.
Whales have started accumulating BTC this week, as per the price trends and BTC inflows to whales’ addresses. Crypto whale data firm Whale Alert announces in tweets regarding whale addresses becoming active this week.
“A dormant address containing 500 BTC (22,161,836 USD) has just been activated after 9.8 years!”
Bitcoin Price Rallies As Adoption Rises
Bitcoin adoption has really picked up this month as oil and gas ExxonMobil considers bitcoin mining, Terra accumulates Bitcoin for building a $10 billion bitcoin treasury, and Russia considers accepting bitcoin for oil and gas.
Bitcoin influencers including Michael Saylor, Elon Musk, and Mike Novogratz recommended buying and holding Bitcoin for its inflation hedge and store of value advantages. Today, Brazilian city Rio de Janeiro announced plans to accept bitcoin payments for taxes from 2023.
Bitcoin price action, on-chain data, and whale buying indicate more upside potential. At the time of writing, BTC price is trading around $44,300.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.