The most recent uptrend in Bitcoin price movements has brought some hope among bearish mood prevailing for the last several months.
Bitcoin has hit nearly $45,000 and extended its gains as the number of whale addresses increased. BTC’s price surged more than 4% which has become the biggest one-day rise since February 2021, bringing back its almost forgotten status of the safe-haven asset.
More detailed data provided by one of the crypto research firms also showed a significant spike in the number of addresses holding at least 1,000 BTC, which are typically considered “whales” in the crypto field. The number of such wallet addresses increased from 2,127 to 2,266 in just one day.
MicroStrategy founder and CEO Michael Saylor in his latest interview named a number of factors that he believes are contributing to the wild price swings in the crypto markets. According to him, the lack of clear regulations most often explains the volatility of crypto markets because big investors feel free to trade in ways they wouldn’t normally resort to when trading traditional assets and dealing with stocks. It leads us to the conclusion that the volatility will be dampened as the regulation progresses become clearer, which in its turn will encourage institutional adoption.
Not only Bitcoin has switched from a descending channel to a promising uptrend. Many crypto Twitter users have been posting a bullish confirmation pattern of the previous few days, saying the coin is likely ready to rally. It is also important to point out that Bitcoin just witnessed its highest level of volume since late July 2021. It happened right after it reversed from $34,000, suggesting a strong change in trend. While the primary direction has become clear, it is still necessary to strengthen the current position to move forward. BTC has yet to close above $45,000, which is the key for a step higher.
Even if Bitcoin manages to confirm this level, it will only be the first step. Step two is a close above $46,000. That’s the high from the first half of February, which makes it a breaking point determining how things will fold in the next couple of months.
The chances for BTC breaking above $45,000 are not very high for the moment as the volume has slightly shrunk. The daily candle opened at a price of $44.4K and the daily low stands at a price of $43.8K. The price of 1 Bitcoin at the time of writing is $43,878.
All the key factors and indicators suggest that March will be a bullish month for the top crypto asset. Some analysts even claim that Bitcoin rally to $50,000 in March is “fully feasible”.