The world’s most valuable crypto has roared back to life with a stealth rally over the past two weeks that pushed it past a key level of $46K and puts it back in positive territory for the year.
Although it was still within its extended trading range with $47K as its ceiling, Bitcoin was still firmly on long-term traders’ radars as the weekly close drew near, which could easily be Bitcoin’s best weekly close of the year so far.
More than 16% higher since March 11, the crypto traded at about $47K, above the upper limit of the $35K-to-$45K range since the beginning of this year. Following the fresh gains, the crypto has gained about 0.6% so far this year.
Outlook
- As a result of the Federal Reserve and other central banks withdrawing some of the stimulus measures in response to the pandemic downturn, the flagship crypto has been stuck in a tight spot. Therefore, less money is available to invest in riskier assets, such as crypto.
- Additionally, the crypto market has come under scrutiny as analysts speculate that they could be used to circumvent Russian sanctions, though many refute this claim.
- However, this is another of those Bitcoin moments when the narrative could change rapidly, pulling investors into Bitcoin, propelling the price higher.
- Price actions reveal it is trading at the top of the 2022 for the fifth time, this is another one of those Bitcoin moments.
- Despite the growth in crypto assets under management in March, aggregate trading volumes fell 30% to $259 million, breaking a downward trend for the fifth consecutive month, according to a report from CryptoCompare.
The volume of coins entering this age band is now at 480k BTC, which is impressive on paper, but well below what we have seen in previous significant bullish impulses in 2019 and 2021. Despite this, it is comparable to the accumulation of 510k BTC in March 2020, which is notable since the size of the economic shock was comparable to current conflict and commodity inflation as well as supply chain disruptions.
A steady upward trend in both of these supplies held metrics would be a positive sign, whereas a decline would indicate a lack of incoming accumulation alongside increasing spending by LTHs (Bitcoins stronger holders).
