Bitcoin (BTC) danced into uncharted territory this week, breaking barriers with a triumphant surge that pushed its value above the $73,000 mark.
The cryptocurrency world is once again in the midst of an exciting price discovery phase, driven by a convergence of bullish indicators and a notable shift in investor sentiment.
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Major players dominate the Crypto Arena
This week’s story unfolded on a stage dominated by two major players from the financial world: BlackRock and MicroStrategy. BlackRock, the undisputed titan of asset management, caused a stir in the market by filing with the SEC, outlining preliminary plans to include spot Bitcoin ETFs in its Global Allocation Fund.
While this move is still in its early stages, it has fueled hopes of increased demand, especially through BlackRock’s IBIT ETF, which already commands a significant 204,000 BTC.
Meet MicroStrategy, the steadfast evangelist of Bitcoin strategies. This corporate giant added even more fuel to the already blazing fire by unveiling the acquisition of another 12,000 BTC.
This move brought MicroStrategy’s total Bitcoin holdings to a staggering 205,000. Such maneuvers by industry giants underscore the growing acceptance of Bitcoin as a legitimate and influential asset class.
While headlines may be dominated by institutional power moves, a look into the tangled web of on-chain data reveals the fascinating tapestry of investor beliefs.
Source: IntoTheBlock
$520 Million in Bitcoin on the Way
IntoTheBlock’s net flow metric showed a significant outflow of 4,470 BTC on March 11. This substantial move, worth more than $520 million, saw coins make a pilgrimage from exchange wallets to cold storage.
The implication is clear: despite reaching record highs, investors are playing the long game and putting their digital treasures in cold storage rather than opting for immediate profits.
This strategic move, coupled with rising demand, paints a bullish picture of supply and demand dynamics.
Total crypto market cap at $2.6 trillion on the daily chart: TradingView.com
The recent exodus from the exchanges, which draws parallels from the pages of history, mirrors a similar event on February 27.
On that day, a net flow of 8,050 BTC correlated with a breathtaking 26% price increase within 48 hours. If this historical rhyme continues, the recent outflows could well be the wind beneath Bitcoin’s wings, helping Bitcoin overcome the $75,000 resistance level in the near future.
As the stage is set for Bitcoin’s next act, technical indicators join the ensemble and sing harmoniously in the chorus of a potential breakout.
GIOM data. Source: IntoTheBlock
Enjoy profits
IntoTheBlock’s “Global In/Out of the Money” chart provides a visual feast, showing that in this age of Bitcoin’s price discovery, almost all of its 52 million holder addresses are now making a profit. This absence of selling pressure, combined with the rising institutional tide, paints a canvas of explosive potential.
While bulls are eyeing the lofty $75,000 target, technical analysis points to a potential support point at $69,000.
This zone, a fortress where more than 6.6 million holders acquired nearly 3 million BTC, could provide a formidable psychological barricade in any price drop.
At the time of writing, Bitcoin is is quickly approaching the coveted $74,000 mark level, trading at $73,529, up 2% and 10% in the daily and weekly time frames, Coingecko data shows.
Featured image from Unsplash, chart from TradingView
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