The Bitcoin (BTC) price is teeming with bullish indicators, particularly the steady growth in wallets holding at least 1,000 BTC over the past five days. At the same time, BTC supply on Coinbase fell to its lowest since 2018, highlighting a significant withdrawal of Bitcoin from exchanges.
This scarcity on trading platforms, combined with the technical momentum where short-term exponential moving average (EMA) lines have risen above long-term lines, paves the way for a potential bull run. These elements point to an imminent uptrend, which paints a hopeful picture for BTC’s future.
Whales are collecting Bitcoin again
Between January 25 and March 25, the number of Bitcoin addresses with at least 1,000 BTC expanded from 1,491 to 1,617. This increase represents the highest number of so-called BTC whales since February 2021. This is another indication of institutional interest in Bitcoin .
The surge in whaling activity has been particularly pronounced over the past five days, with the number climbing from 1,596 to 1,617. Such assertive accumulation by large addresses can act as a proxy for the broader market, suggesting that a bull run may be imminent.
The aggressive acquisition by these whales is often considered a positive market indicator. This suggests that well-capitalized players are preparing for an upward shift in BTC’s price trajectory. As a result, this could instill greater confidence in retail and smaller institutional traders.
If they interpret whales’ investment behavior as a reliable forecast, they can increase their market participation, further fueling the price rise. Monitoring these whale populations can therefore provide insight into potential large-scale market movements, as their buying patterns can be a precursor to significant price rallies in the Bitcoin ecosystem.
Read more: 7 Best US Crypto Exchanges for Bitcoin (BTC) Trading
Supply Squeeze on Coinbase
The BTC supply on Coinbase, the largest US exchange, has been steadily decreasing since the start of the year, recently peaking at just 304,000 BTC. This significant figure marks the lowest BTC supply level on Coinbase observed since 2018, underscoring a declining availability of Bitcoin on the market platform.
Such a reduction in supply, especially on a leading exchange like Coinbase, is a notable development, indicating a tightening of available Bitcoin for trading and purchase.
A limited supply often precedes a price increase, as the basic economic principle of supply and demand indicates. In the context of BTC, a lower supply on a major exchange indicates that fewer bitcoins are available for buyers. It also reflects a broader market sentiment of holding rather than selling, suggesting that investors are optimistic about future price movements.
This scenario sets the stage for a potential bull run, as the reduced supply on Coinbase could lead to increased competition among buyers, driving up the price. Coupled with more whales hoarding BTC recently, the current supply dynamics on Coinbase could very well be the precursor to a significant upward trend in BTC’s price.
BTC Price Prediction: A New All-Time High Soon?
The BTC 4-hour chart provides a bullish signal. A short-term EMA line has crossed above a long-term EMA line, suggesting an increase in buying pressure and a possible continuation of the current uptrend. EMA, or exponential moving average, lines are trend indicators that give greater weight to more recent price data, making them more responsive to price changes than simple moving averages. This reaction can provide earlier signals of market sentiment shifts.
The recent crossover, often seen as a bullish sign, could be the precursor to a robust upward trajectory, possibly pushing BTC to a new all-time high (ATH) if the trend gains sufficient momentum and investor confidence remains high. The current ATH is $73,797.35, and with a new Bitcoin halving approaching every day, a new ATH for BTC shouldn’t sound crazy.
Read more: Bitcoin Price Prediction 2024/2025/2030
Conversely, should this upward trend falter or external market factors introduce uncertainty, there is a risk that the BTC price could pull back. If buying pressure eases and the market is unable to sustain the upward momentum indicated by the EMA crossover, Bitcoin may retest lower support levels, potentially revisiting the $60,000 mark.
Disclaimer
In accordance with the Trust Project Guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimers have been updated.
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