The Bitcoin market had experienced a recent run-up which has caused a number of analysts and financial experts to view the BTC/USD pairing with renewed interest. Many now expect closing to occur well above $55,000, and it is expected to happen in the near future with the rapidly approaching daily sessions.
With this in mind, there are a number of reasons as to why this has occurred. Many market and financial strategists consider the pair to be performing extremely well regardless of the fact that their prices had crashed by over 21% in the last sell-off since early 2020. This article will therefore look into three reasons which are indicators of both fundamental catalysts as well as technical support.
The return of the Bitcoin Whales
A recent spike was highlighted in whale activity regarding the Bitcoin network by the CEO of CryptoQuant, Ki-Young Ju. He discovered that there had been an outflow of over 10,000 BTC per individual block via Coinbase.
This surge could result in Bitcoin using the accumulation as natural support and also as a price floor in the formation of new and improved sessional highs, which could be worth well over $55,000.
Evidence of accumulation
One more firm which focuses on data analytics, IntoTheBlock, reported an even bigger increase in purchasing activity close to the lower BTC levels. Their IOMAP displayed indications of traders buying BTC in droves, and the trading itself was reported to be somewhere between the amounts of $46,000 and $48,000.
Furthermore, this will only serve as a sort of psychological support for Bitcoin, as they aim to reach levels well above $50,000.
The institutional and financial boom
The last reason could be related to mainstream finance and how it is contributing to Bitcoin’s seemingly bullish bias. There had been reports by Reuters that Goldman Sachs has plans to launch a BTC trading desk after they had shut it down three years prior.
Furthermore, Citi researchers provided a conclusive report which also indicated that Bitcoin could soon very well be poised to experience a large-scale adoption and that this could potentially result in it becoming the currency of choice in terms of international trade. Lastly, Tesla, as well as PayPal, may yet have a role to play in this as well, but only time will ascertain if this is the case.