Bitcoin’s attempt to breach the $64,000 barrier hit a snag, facing temporary rejection at $63,750. However, the world’s leading cryptocurrency has quickly recovered, currently trading at $61,686, reflecting an 8.26% gain over the past 24 hours. This uptrend follows a brief pullback below $60,000, indicating the market’s continued volatility.
Bullish Sentiment Persists Despite Rejection
Despite the temporary setback, several factors maintain bullish sentiment for Bitcoin:
- Massive Trading Activity: Bitcoin ETFs continue to witness significant trading activity, fueling investor enthusiasm.
- Upcoming Halving: The anticipation surrounding the upcoming Bitcoin halving, scheduled for May 2024, keeps investors optimistic about potential price increases.
On-Chain Activity Reaches 2022 Levels
While facing a minor pullback, Bitcoin’s on-chain activity surpasses even 2022 levels, according to on-chain data provider Santiment. This surge in activity includes:
- A staggering $35.37 billion in on-chain transaction volume.
- Over 283,000 unique tokens being moved.
- A significant rise in whale transactions exceeding $1 million each.
Crypto analyst Ali Martinez suggests the absence of significant resistance levels above the current price point. He highlights a robust support zone between $54,300 and $56,200, backed by buying activity from over 900,000 addresses holding nearly 500,000 BTC.
US Government Moves $1 Billion in Bitcoin
In a separate development, the US government reportedly transferred approximately $1 billion worth of Bitcoin from wallets holding seized funds from the Bitfinex hack. This movement, amounting to less than 0.01% of the total Bitcoin market cap, might create temporary selling pressure. However, its long-term impact remains unclear.
Also Read: Bitcoin Blasts Past $63K: Will It Hit $200K by 2025? Experts Weigh In
Counterpoint: Whistleblower Edward Snowden’s Speculation
Interestingly, whistleblower Edward Snowden has suggested the possibility of the US government secretly accumulating Bitcoin to manage its national debt. While this remains unconfirmed, it highlights the diverse perspectives surrounding Bitcoin’s future.
Despite the recent pullback and the US government’s Bitcoin movement, Bitcoin’s underlying bullish fundamentals remain strong. The on-chain activity, combined with the approaching halving and continued investor interest, suggests that the current correction might be short-lived. However, as always, the cryptocurrency market is inherently volatile, and investors should conduct thorough research before making any investment decisions.
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