- Bitcoin’s rally to $64k was driven by high on-chain activity, with $35.37B in transactions and 283,000 unique tokens traded.
- Analysts see Bitcoin in a bullish phase, with potential for a corrective phase as per Elliott Wave Analysis.
- Upcoming Bitcoin halving and substantial ETF trading volumes fuel optimism despite potential selling pressure from government moves.
Bitcoin’s value soared to a $64,000 peak today, marking a significant milestone in the cryptocurrency’s history. As highlighted by Santiment, an analytic platform, this historic rally is backed by robust on-chain activity that has yet to be witnessed since 2022.
The network saw an impressive $35.37 billion transaction volume, with over 283,000 unique tokens changing hands. Moreover, the market observed 3,661 transactions exceeding $1 million each, highlighting the involvement of significant investors or ‘whales’ in the trading dynamics of digital currency.
Significantly, this rally comes after Bitcoin briefly dipped below the $60,000 mark. However, the cryptocurrency demonstrated resilience, rebounding and maintaining a positive trajectory. Bitcoin trades at $62,100.88, up 8.56% in the last 24 hours, with a market capitalization of $1.21 trillion. This recovery underscores the robust support and buying interest within the crypto community, especially in a tumultuous market that saw $580 million in liquidations within just half a day.
As noted by TRADINGLOUNGE, an analytic platform, adding a layer of complexity to Bitcoin’s trajectory is the $BTCUSD Elliott Wave Analysis by analyst Kittiampon Somboonsod, positioning Bitcoin in Wave III of its journey. According to this analysis, the cryptocurrency is nearing the completion of a five-wave increase within Wave III, hinting at an impending corrective phase.
Moreover, the anticipation surrounding the upcoming Bitcoin halving event adds to the bullish sentiment among investors. This event and the substantial trading volumes seen in Bitcoin ETFs fuel the optimism for an even more significant price surge.
However, the market faces potential pressures, such as the recent movement of a significant transfer of 1 BTC by the U.S. government. Reports indicate that wallets associated with seized assets transferred approximately $923 million worth of Bitcoin.
While this could introduce selling pressure, the impact is likely minimal, given Bitcoin’s vast market cap. Additionally, speculations suggest the U.S. government might be accumulating Bitcoin covertly, possibly to offset the national debt, as hinted by whistleblower Edward Snowden.
Consequently, the path ahead for Bitcoin appears predominantly bullish. Analysts like Ali Martinez point out the absence of significant resistance levels, with a strong support zone between $54,300 and $56,200. This range is pivotal, as nearly 903,540 addresses have amassed about 500,000 BTC, reinforcing the cryptocurrency’s foundation and setting the stage for further gains.
