The price of Bitcoin has been down around $43,500 for almost a month, eroding the confidence of market participants. With the new bullish trend, the market appears to have regained its potential to start a new bullish uptrend soon. BTC price staged a parabolic recovery and surpassed $45,000 in a surprising move. However, the rally continued above $46,000, indicating that the market is preparing for a Bitcoin halving event.
Moreover, major altcoins such as Ethereum, Solana, Avalanche, Chainlink, Polygon, XRP, etc. continue to consolidate above their respective support levels. The bearish sentiment that has swept the BTC price rally over the past few weeks is believed to have triggered the rally. Moreover, a significant shift in the focus of traders has been witnessed, which could keep the bullish momentum high in the coming days.
Through this, traders appear to have taken an extremely optimistic attitude toward Bitcoin while keeping their assets on exchanges. According to data from st tlyBalances on exchanges have plummeted to levels seen in December 2017, at the start of the 2017-18 bull market.
This is a sign that Bitcoin’s dominance over other altcoins has increased, with the price surging above $46,000 today. It is also worth noting that balances on the exchange have been continuously decreasing, suggesting that traders have been bullish on the token from the beginning. Therefore, they continued to accumulate tokens without any intention of selling them or exchanging them for other tokens.
Therefore, they remain deactivated and safe in your wallet, preventing selling pressure from building up. According to data from CryptoQuantThis percentage of inactive Bitcoin supply has soared to around 70% new ATH, something never seen since its inception.
This determines the optimistic mindset of market participants who anticipate a healthy bull market in the future. This large increase in pre-bull market accumulation raises the possibility of a strong and extended rally. So, if Bitcoin (BTC) price maintains above the upward trend through the weekend, there should be nothing stopping the token from hitting $50,000 this month.