Bitcoin (BTC) has slowed recently, with price action relying on previously recovered support areas to continue its uptrend and outstanding performance since the beginning of the year. Lately, there have been more expectations of BTC breaking into new levels and reaching yearly highs.
Despite the slowdown in Bitcoin’s price action, some indicators suggest that it may be on the verge of a significant upside along with the market sentiment. This upside trend may result in a new bull run as investors return to the cryptocurrency market en masse.
Bitcoin Fuels Up For The Long Ride
The chart below shows investors are again betting and optimistic about the crypto market, despite a persistent downside trend. The latter is in the rearview mirror for investors and financial institutions.
According to a report from ByteTree, Exchange Traded Funds (ETFs) have seen a sharp increase in their holdings. Not just one, but three different ETFs have added over 1,465 Bitcoins this month.
This indicates that the crypto industry’s market sentiment has changed since the beginning of 2023, despite crises like the bankruptcy of FTX, Three Arrows Capital, and the recent feud between Gemini and Genesis.
Together, retail and wealthy investors are fueling BTC’s rally. The chart below shows that the number of addresses holding Bitcoin has grown significantly over the past month. The number of addresses holding 0.1+ coins, often associated with retail investors, hit an all-time high (ATH) of 4,217,261, according to Glassnode data.
The previous all-time high for addresses was reported on January 11, 2023, by Glassnode, with an amount of 4,217,135 addresses holding the flagged currency.
In the chart above, shared via a tweet from “Altcoin Sherpa,” there are see similarities in the current market price action and the daily chart of Bitcoin, after the fall from its all-time high of $69,000, months of accumulation and sideways price action and the start of momentum before a full take off to reclaim the previous high with expectations to break to new levels and explore new territories.
Is This Enough For A BTC Price Rally?
Currently, Bitcoin is trading at $23,150, up slightly in the last 24 hours after a small pullback to regain strength and aim for the next target of $23,800. Bitcoin is barely up in profits in the last seven days, with 0.8% up in the sheets.
According to a recent report by NewsBTC, Bitcoin could see further downside correction if the currency fails to clear the $23,250 resistance level, which can result in a failed attempt to further lean on the support line near the $22,650 zone.