Bitcoin prices have been impressive in the past few weeks, surpassing the psychological $90,000 level in the past week. The best cryptocurrencies appear to be approaching the weekend, if not more, after surpassing $95,000 on Friday, April 25th.
Who is behind the BTC rally?
In a new post on the X platform, on-chain analyst IT Tech delves deep into the recent Bitcoin price rally, identifying the catalyst for a drive of around $74,000 to $95,000. According to Crypto Pundit, recent blockchain data shows that there has been a clear turn of capital over the past month.
This analysis revolves around the different classes of activities of Bitcoin investors (based on how long they hold the coin). According to IntotheBlock data, most activities are not surprising from traders (or short-term holders) who have increased their balance by almost 19% over the past 30 days.
IT Tech noted that these traders remain true to their reactive nature, driven by FOMO (the missed fear) and have been actively purchasing BTC since the price fell to around $74,000. At the same time, short-term traders are not stepping out of the gas with Bitcoin dancing above $95,000.
Additionally, long-term holders have stopped shaving their holdings in recent weeks and appear to have removed “major overhead pressure” in Bitcoin prices. According to IntotheBlock data, the balance of long-term BTC holders has increased by at least 0.3% over the past 30 days.
Source: @IT_Tech_PL on X
Finally, IT Tech highlighted a cohort of investors called “cruisers,” with Bitcoin Holdings being 1-12 months. Given the 4.4% decline in balances over the past month, on-chain analysts said these investors are either mature or profitable as “Hodlers.”
IT Tech concluded that Bitcoin prices could enter a speculative bullish phase characterized by significant short-term capital inflows and long-term stability. However, analysts warned of short-term hand control.
Given their reactivity, highly unstable periods have historically been correlated with short-term holder domination. This means there may be high volatility in the future of the Bitcoin market. In any case, IT Tech believes Bitcoin prices have yet to reach the top of the local area.
Bitcoin price at a glance
At the time of writing, Bitcoin is valued at around $95,210, reflecting a 2% increase over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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