Bitcoin's Recovery Rally - Key Level To Bullish Momentum

We have seen $CME Bitcoin - main 2404(BTCmain)$ struggled trying to move upside over the past week, we could see that it has entered into a consolidation phase while trading below $69,000 mark.

But if we look beyond that, we could see that the long vs short ratio, it still managed to stay within long ratio at 71. Though it is not as high as when Bitcoin was above $71,000, but it is at a reasonable level. This has give some speculation that there might be a potential stagnation phase when we do not see the same volatility from Bitcoin’s usual fluctuations.

Bitcoin market trajectory in terms of aggregated volume look like we are not seeing much selling over the past week.

Bitcoin’s Movements Build Up For Next Rally

If we looked deeper into how Bitcoin’s movements especially when it approaches crucial resistance levels. I would look at the active addresses transactions on the Bitcoin Network, if we look at the level when Bitcoin was trading between $71,000 to $73,000 between 12 March to 15 March, the number of active addresses was flat and at its high.

Currently, we are seeing number of active addresses moving upwards, which is encouraging. The important resistance threshold look like to be at $70,000, Bitcoin could be on the brink of a significant breakout, Bulls on active addresses must clear the $70,000 Resistance area to Confirm the upside Breakout.

One thing that have been echoing in the crypto community would be investors need to stay patient, especially we are less than 2 weeks to impending Bitcoin halving event. Halving is a pre-programmed event built into the Bitcoin protocol that occurs approximately every four years within the Bitcoin network to reduce the reward for mining new BTC blocks.

Crypto community anticipation for a potential rally above the $70,000 mark despite Bitcoin’s recent consolidation is growing, especially halving is less than 2 weeks away. This is important as halving ultimately decreases the supply of new BTC, and reduced supply often leads to increased demand and speculative buying.

Not Forgetting Spot Bitcoin ETFs

If we were to look at previous all-time highs, they are often preceded by periods of consolidation and uncertainty. This time we would need to look at how Spot Bitcoin ETFs has on Bitcoin prices, if we look at the Spot Bitcoin ETF Volumes when Bitcoin was above $71,000 in 12 March to 15 March, the volume is significant.

There have been bullish indicators like pennant formation and strong support levels, prediction of a breakout in coming weeks is there. But I personally would continue to monitor the volume size of Spot Bitcoin ETFs, this is important for investors seeking upward momentum in Bitcoin’s price trajectory.

So accumulation by retail traders short-term holders since December 2023 have helped to increase liquidity to push Bitcoin’s price, but we could also look at Spot Bitcoin ETFs like $iShares Bitcoin Trust(IBIT)$ $Grayscale Bitcoin Trust(GBTC)$ $Fidelity Wise Origin Bitcoin Fund(FBTC)$

These 3 have significant market share in terms of volume, and I believe their movements would contribute how Bitcoin price trajectory would move.

Summary

If we looked at how traders and investors would be putting their money, there have been pretty encouraging liquidity build up by newer retail traders, so these traders might also go into Spot Bitcoin ETFs, if that happen, we could be seeing Bitcoin price moves to $70,000 mark.

Appreciate if you could share your thoughts in the comment section whether you think Bitcoin is building a bullish momentum from how volume have been moving?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.