Bitcoin (BTC) price rose above $71,000 for the first time since March 15 as capital flows into spot BTC exchange-traded funds (ETFs) turned positive.
Data from Cointelegraph Markets Pro and TradingView shows that BTC has risen more than 0.55% over the last 24 hours to hit a weekly high at $71,582 on March 26.
Several factors are fueling BTCs current price movement, including consistent spot Bitcoin ETF inflows, the upcoming Bitcoin halving and the overall positive investor sentiment among institutional investors.
Lets look at the factors behind Bitcoins rally on March 26.
Large Bitcoin investors have been adding to their holdings in anticipation of price increases in the future. Data from market intelligence firm Santiment shows that the percentage of wallets holding between 1,000 BTC and 10,000 BTC has increased from 23% on Jan. 1 to 25.17% on March 26.
As shown in the chart below, the percentage of those holding between 10,000 BTC and 100,000 BTC saw a sharp spike from 11.68% on March 2 to 12.42% on March 21 before slightly dropping to current levels of 11.98%
Bitcoin whale accumulation is supported by reducing BTC deposits on exchanges. According to Glassnode data, the number of deposit transactions to known exchange wallets started decreasing on March 5, when BTCs price climbed above $69,000.This drop continued on March 19 despite the price falling more than 9% on the day to close below $65,000, with deposits to exchanges declining from 109,420 transactions to 55,505 on March 25.
TheDecreasing transfer of BTC to exchanges suggests a lack of intent to sell, which is generally a bullish sign.
Instead, there has been an increase in the number of whales transferring Bitcoin from exchanges. On March 11, blockchain tracker and analytics firm Whale Alert flagged several transactions transferring large amounts of BTC from exchanges to self-custody wallets.
On March 25, one holder transferred 2,400 BTC, worth $169.5 million, from the Coinbase crypto exchange to an unknown new wallet.
Another whale withdrew 4,797 BTC, worth about $339 million, from Coinbase to an unknown wallet.
In a recent report, market data provider Glassnode said, The significant buying power of ETFs is set to overshadow the traditional supply squeeze effect expected from the upcoming Bitcoin halving set for April this year.
Glassnode analyst Marcin Miosierny wrote that the supply dynamics of Bitcoin are increasingly influenced by the actions of long-term holders (LTHs).
Miosierny advised traders to closely monitor the activity of LTHs, as their decisions to sell or hold can significantly impact market liquidity and sentiment.
The analyst added:
As the name implies, the Bitcoin supply halving is an event where the reward for mining new blocks on the Bitcoin blockchain is cut in half. After the next halving, the BTC rewards issued to miners per block will be reduced from 6.25 BTC to 3.125 BTC.
Crypto trader and analyst Rekt Capital shared a chart showing the 4 Phases of The Bitcoin Halving in a March 25 post on the X social network, saying the current cycle has been a story of Re-Accumulation Ranges and adding that there is a possibility for price going into the Halving is further consolidation at highs the Re-Accumulation phase.
As Bitcoins halving draws near, investors are rushing to place their best positions for the event.
Related: Bitcoin ETFs see $15M comeback as BTC price taps best close in 10 days
Bitcoin traders and analysts are now focusing on the next level for BTC after its rally back above $70,000. Data from IntoTheBlock shows that whales added more than 80,000 BTC when the price dropped to $64,000. According to the blockchain analytics firm, this buying appears to be the momentum behind Bitcoins move back to the $70K range.
The firms In/Out of the Money Around Price (IOMAP) model shows that BTC sits on relatively strong support around the $64,000 level compared with the resistance it faces in its recovery path.
What is clear is that traders are determined to hold the price above $70,000. According to independent analyst Daan Crypto Trades, investors should be ready for a crazy rise as $100,000 becomes the focus for the BTC price.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Bitcoin whale accumulation suggests pre-halving BTC rally will continue - Cointelegraph
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