- Bitcoin has enjoyed a trend reversal over the past few days, racing back toward its mid-March all-time high of USD $73K.
- According to analysts CryptoQuant, a major reason for the spike in price is due to profit-takers leaving the market.
- Meanwhile, longer-term holders are starting to accumulate more BTC amid hype surrounding the upcoming halving event.
- Bitcoin halving is now just ten days away.
It’s been nearly a month – but Bitcoin is back in the market’s good books. The cryptocurrency has enjoyed a stellar weekend to soar back toward its mid-March all-time high. We are now less than ten days away from the heavily-anticipated halving, and BTC is trading at close to USD $72K (AUD $109K). So is it the hype behind the halving that’s driving Bitcoin back toward new heights, or is something else cooking?
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According to a post on CryptoQuant, a major reason for Bitcoin’s trend reversal is the absence of profit-takers. As BTC dropped to mid-$60k (USD), a whopping $2.7B worth of profits were taken from opportunistic sellers capitalising on the price correction. But with so much money now off the table, downward pressure quickly dissipated and the coin found its bottom.
With the majority of short-term holders leaving the market, all that remained were longer-term accumulators gearing up for the upcoming halving event. This turned into a major rally, with the price of BTC rising nearly 6% from the major sell-off days between March 25th and April 1st. Inflows to long-term holders quickly flipped to their highest point since the middle of March – which coincided with BTC’s previous all-time high. If this trend continues, we may have a new peak price before the halving event.
Other factors are at play too. An increase in USDT holdings has long correlated with increase in Bitcoin’s price – likely due to new, institutional buyers using the coin to leapfrog into other crypto assets. And over the past week, there has been a significant spike in new USDT minted, according to CryptoQuant.
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Put it all together, and the technical charts are starting to look rather pretty for BTC holders. Of course, there’s no guarantee that the outcome of the halving is as positive as some are predicting. But for now, speculation that Bitcoin reaches a new all-time high in the coming 10 days doesn’t seem too far-fetched.
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