Bullish momentum is building around the crypto market, and Bitcoin, the leading digital asset, is steadily trending upwards, breaking past key resistance levels that previously capped its rally. Since BTC’s price found its footing again, positive sentiment has improved around the asset, with buying activity increasing significantly over the past few days.
The Recent Bitcoin Bounce Backed By Buying Pressure
With the market momentum shifting, Bitcoin is exhibiting renewed strength as the flagship asset climbs back to the $82,800. In a Santiment’s report shared on X on Wednesday, it was revealed that BTC has seen a Year-to-Date (YTD) return of -6%, following its most recent bounce.
During the crash in early February, the asset was down as much as -27%. However, due to ongoing bullish momentum in the market, Santiment predicts a move to the $88,000 price mark, which the platform believes would put BTC back to even on the year. This would serve as the stepping stone to draw in several traders and investors back into the cryptocurrency sector.
The ongoing recovery coincides with a discernible rise in purchasing activity, indicating that demand is starting to surpass recent pressure to sell. Such a setup points to rising confidence among market participants toward the recent bounce back to crucial levels.
Santiment, in another X post, highlighted that key stakeholders have been accumulating since the beginning of May. At the time of the report, Bitcoin’s market value was sitting at $81,700, marking a 3-month high.
This buying activity is observed among wallet addresses holding 10 BTC to 10,000 BTC, who have scooped up over 16,622 BTC, repressing a 0.12% rise. With this new wave of accumulation, BTC’s uptrend could continue if the trend holds, making this a critical signal to watch out for in the following days.
However, while the cohort has been accumulating, retail investors, particularly wallet addresses holding less than 0.01 BTC, have been dumping. Within the same period, these investors have dumped about 28 BTC, which represents a 0.05% decline.
A trend of this kind is capable of shaping BTC’s next price direction. According to Santiment, the strongest bull runs in crypto typically occur when smart money moves more coins to their wallets while small wallets drop out. Although there isn’t much data in May, things are going well enough to support further increases in BTC prices.
BTC Heading For The $89,000 Mark
Bitcoin’s upward move is set to continue as key metrics flash strength. On-Chain Mind has predicted a surge to the $89,000 level after examining the Liquidity Density Nodes. The data analyst states that if BTC breaks the current resistance zone with conviction, the metric shows a clear path of least resistance straight to the next major liquidity cluster at $89,000.
At this juncture, low-density areas between here and there mean fast, clean upside once the wall is cleared. As a result, the analyst declares that the next real battle for BTC will take place at the $89,000 node.
Featured image from Pixabay, chart from Tradingview.com
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