Bitcoin (BTC) experienced a significant price drop below $40,000 in the past 20 days, causing turmoil in the cryptocurrency market. Despite this, investors who took positions after the decline have seen profits as the price recovered. This recovery indicates that the previous support level has been reaffirmed, leading to a positive trend in the market.
The current upward trajectory of Bitcoin is reminiscent of the 2021 bull run. Analysts suggest that if the Short-Term Holder Realized Price reaches $38,300 and the general Realized Price hits $60,000, the market could be setting up for a strong bull run, signaling a robust market optimism.
Market Sentiment and Address Activity
In the midst of these price movements, a decrease in the number of Bitcoin addresses holding less than 1 BTC was noted after a peak of $49,000. However, the number of such addresses appears to have stabilized, especially around the $40,000 mark, indicating a consolidation phase that is catching investors’ attention.
This stabilization in the number of small Bitcoin addresses suggests a shift in market sentiment. Small investors seem to be moving away from panic selling and are beginning to show renewed confidence in the market’s potential for growth.
The consolidation at the $40,000 level may also signal the formation of a support area, potentially attracting more investors as they perceive it as a strong entry point. Such market behavior could lead to increased upward momentum for Bitcoin.
As of the latest update, BTC is trading at $43,375.36, marking a slight increase over the past 24 hours. The trading volume of Bitcoin has also surged by 48%, crossing the $22 billion threshold, reflecting a heightened market activity.