Bitcoin (BTC) has recently seen a surge in activity, with millions of dollars worth of the digital asset being withdrawn from exchanges over a seven-day period. According to popular crypto analyst Ali Martinez, approximately 22,647 BTC valued at more than $1.57 billion were taken off exchanges during this time. This movement of Bitcoin off exchanges could indicate a shift in market sentiment and potentially signal a bullish trend for the cryptocurrency.
In addition to the withdrawal of BTC from exchanges, Martinez also highlights a positive trend in the number of daily active Bitcoin addresses. After a downtrend that began on March 5th, there has been a significant increase in the number of active addresses, with 765,480 addresses being active in just 24 hours. This surge in network activity is seen as a positive sign for the continuation of the BTC bull run.
Martinez points to a strong support zone for Bitcoin between $69,380 and $67,350, where nearly 2 million addresses bought 964,000 BTC. Holding this level is crucial for Bitcoin to maintain its upward momentum and potentially push towards new highs. The analyst emphasizes the importance of this support zone in determining the future price movement of Bitcoin and its ability to sustain its current bull run.
Taking a closer look at Bitcoin’s cumulative value-days destroyed (CVDD) metric, Martinez suggests that the next potential local top for Bitcoin could be around $89,200. The CVDD metric analyzes the value of each Bitcoin transaction while considering the number of days since the coins were last moved. This metric is used to identify potential market tops and bottoms, providing traders with valuable insights into the market sentiment and potential price movements.
Despite the recent sideways movement in the digital asset market, Bitcoin is currently trading at $68,058. The ongoing withdrawal of BTC from exchanges, the increase in daily active addresses, and the strong support zone for the cryptocurrency all point towards a potential continuation of the BTC bull run. Investors and traders are closely monitoring these key indicators to gauge the future trajectory of Bitcoin and capitalize on potential market opportunities. Subscribe to get email alerts for the latest updates on Bitcoin and other cryptocurrencies. Follow us on X, Facebook, and Telegram for more insights and analysis on the digital asset market.
Discussion about this post