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Despite recent surges, Bitcoin’s current state suggests it’s not as overheated as prior bull markets, as on-chain data hints at significant accumulation by Bitcoin whales. Renowned crypto analyst Ali reports that over the last five days, Bitcoin whales have acquired more than 30,000 BTC, totaling approximately $1 billion.
Boost from ETF Applications
The catalyst behind this heightened interest in Bitcoin is the growing anticipation of Bitcoin spot ETF applications. This trend is becoming more pronounced among both institutional investors and whales, as indicated by data from Into The Block, a blockchain analytics platform. The surge in institutional activity coincides with a significant increase in the number of transactions worth more than $100,000 on the Bitcoin blockchain, marking a new peak for 2023.
Large Transactions Surge
The surge in large transactions, those exceeding $100,000, commenced after the filing of Blackrock’s ETF application and has now surpassed this benchmark as Bitcoin reaches new yearly highs.
Bitcoin’s Recent Performance
Recently, Bitcoin briefly surpassed the $35,000 mark for the first time since May 2022. Over the past seven days, BTC has witnessed a 14.44% increase, eventually stabilizing at around $34,253 after hitting its yearly high of $35,157, although it failed to breach this crucial price level.
In 2023, Bitcoin has already demonstrated impressive performance, with gains exceeding 100%. These indicators suggest that Bitcoin might be in the early stages of a bull market. Furthermore, not only are cyclical patterns aligning favorably for Bitcoin, but short-term activity is also intensifying. Nevertheless, the Bitcoin market value to realized value (MVRV) ratio indicates that Bitcoin is not yet as overheated as it was during previous bull markets.
Potential Resistance and Support Levels
Historically, Bitcoin bull markets have peaked when the MVRV ratio reached 300% or more. The current MVRV ratio stands at 150%, implying that there may be more room for the bull market to continue. The next significant resistance level for Bitcoin is the recent high of $35,000. If this level is successfully breached, the next target could be in the range of $38,000 to $39,000, particularly considering that 333,000 BTC was purchased around that price point.
However, it’s essential to consider the possibility of a correction. In such an event, strong support is expected to be found near the $30,000 mark, indicating that the market has developed a robust foothold in that range.
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