As March begins, Bitcoin has had traders honing in on the belief the top crypto asset could be completing its period of consolidation before the next trend starts. Earlier today, Bitcoin soared almost 4% to tap $24,000 before recoiling back to $23,412 at press time. On the other hand, Ether, the second largest crypto by market cap, grew by about 3% to tap $1,600 during the Asian trading session.
BTCUSD Chart by TradingView
Likewise, other cryptos recorded nominal gains, with MATIC, XRP, DOGE and SOL growing roughly 3.14 %,1.70%, 1% and 2%, respectively, in the past 24 hours. Notably, albeit most cryptos posted small gains, about $48.77B was pumped into the crypto market in the past day, pushing the global crypto market cap up 1.60% to $1.08T.
Bitcoin had an impressive run in January, gaining around 40%. However, between February 1st and 13th, it dropped roughly 11%, causing a wave of concern among traders. But this setback ended up short-lived, as BTC recovered and surged 15% by February 20th, reaching a peak of over $25,000. Ever since, the markets have mellowed out on the back of concerning inflation jobs data and a flurry of regulatory action in the US, with Bitcoin and Ethereum getting trapped in a long sideways move.
Despite the lacklustre volatility, various technical suggestions suggest that the peer-to-peer digital currency could soon shake off the dust. Today popular pseudonymous on-chain analyst “Ali” shared a chart showing a massive accumulation of BTC above $20,000.
“Bitcoin is back above key support. Onchain data shows that 1.8 million wallets bought 1 million $BTC between $23,055 and $23,730, representing an important demand wall,” he wrote. However, according to him, BTC still needs to close decisively above the $23,800-$24,500 barrier to trigger a breakout to $27,000.
Glassnode data also shows a dramatic increase in hodler fortunes since Jan 1st, with more BTC investors refusing to sell their coins. Notably, the number of “whole-coiners”-or wallet addresses with at least 1BTC- has continued to inch close to the 1 million mark for the first time in Bitcoins History. As of March 1st, there were 982,754 such wallets.
“Grizzly”, a market analyst for Cryptoquant, noted that the Bitcoin Spent Output Profit Ratio (SOPR) ratio had reached the level it had previously reached at prior long-term bottoms, signalling a tide change.
“Long-term uptrends begin when the blue line crosses above the yellow line. That hasn’t occurred yet, but we’re getting close,” he wrote.
According to the pundit, the 30MA SOPR needs to cross the yellow line and steadily rise failure to which Bitcoin could be subjected to a deeper correction or a “long-term bottom.”