Bitcoin (BTC) faced a downturn of over four per cent within the last 24 hours, revisiting the support zone between $62,000 and $61,000. Despite stabilizing around $63,000 during the early New York trading session, the resilience of long-term holders provided some stability amidst the market turbulence.
Accumulation Trends and Investor Sentiment
Recent on-chain data analysis by Santiment reveals significant accumulation trends among BTC holders. Addresses holding between 1,000 and 10,000 coins accumulated approximately 80,544 units since March 1. Similarly, wallets with holdings between 10,000 and 100,000 coins accumulated nearly 92,000 units during the same period, reflecting a bullish sentiment among larger investors.
Factors Fueling Bearish Sentiment
BTC Halving Volatility
With the fourth Bitcoin halving just days away, trading volume has surged by over 10 per cent to approximately $46.7 billion. This increase has coincided with a growing preference for stablecoins, with Tether’s USDT supply rising by over $1 billion in the past 24 hours. The impending halving has led to heightened volatility, resulting in liquidations among both long and short traders.
Geopolitical Tensions
Bitcoin’s price movements have closely mirrored those of major global stock indexes amidst escalating geopolitical tensions, particularly in the Middle East. The recent drone and missile attack by Iran on Israel has further fueled market uncertainty, prompting investors to adopt a cautious approach.
Future Outlook for Bitcoin Price
Crypto analyst Ali Martinez highlights Bitcoin’s consolidation within the $61,000 to $72,400 range in recent weeks. Martinez suggests that a breakout from this channel could lead to a significant price movement. On the bullish side, Bitcoin could surge to levels between $79,000 and $86,000, while on the bearish side, it may find support between $51,600 and $56,200.
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