• Bitcoin hits largest single-hour spike in total unique addresses interacting on the BTC network since July 4, 2021.
  • The leading cryptocurrency is rangebound between $45,000 and $48,000.
  • Analysts expect BTC to face resistance on its run to all-time high.
  • In the sixth consecutive week of outflows from crypto funds, investors withdrew $22 million.
  • The overall BTC trading volume may drop.

Bitcoin’s price rally led the crypto market’s total capitalization to $2 trillion for the first time since mid-May. Experts suggest that BTC is due for a correction and its rally is likely to pause. 

BTC price correction likely to interrupt rally to $51,000

Earlier today, Bitcoin recorded the most significant spike in unique daily addresses since July 4, 2021. The spike came despite BTC’s rangebound price action at the start of the week. An increase in activity signals market optimism after months of neutral or bearish outlook since the mid-June price drop below $40,000. 

Unique Address Activity on the BTC network

Unique address activity on the BTC network

BTC price settled between $45,000 and $48,000. This encouraged traders to anticipate another run toward the April all-time high of $64,804. A key indicator of bullish sentiment among investors is the Bitcoin Fear and Greed Index.

At the time of writing, the index is in the “Greedy Territory” with a score of 72. It is yet to hit “Extreme Greed,” representing mass euphoria, and will likely turn into price consolidation for BTC.  

Despite week-long “Greed” on the trader sentiment index, investors have pulled $22 million from crypto funds. Last week marks the sixth consecutive outflow in the longest streak since January 2018, according to a Coinshares report. Fund outflows generally occur when the overall trading volume is low. 

The current trade volume ($378.76 million) is at November 2020 levels and less than half of the volume recorded in June. The number is increasing steadily. The slow increase faces resistance, as the short-term momentum behind the supply squeeze rally fades. 

Bitcoin exchange trade volume

Bitcoin exchange trade volume

A drop in Bitcoin reserves on exchanges was termed a “supply shock” by Will Clemente, an independent Bitcoin analyst. According to experts, a reduction in supply coupled with rising demand triggered a BTC price rally. 

The cryptocurrency trader and analyst behind the Twitter handle @rektcapital analyzed the current BTC setup in his tweet:

Bitcoin is trading close to the $45,000 level, and analysts at FXStreet have predicted that BTC price is due for a correction before it hits the target of $51,000.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction

SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction

The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.

More TRON News

XRP fails to break past $0.50, posting 20% weekly losses

XRP fails to break past $0.50, posting 20% weekly losses

XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22. 

More Ripple News

ImmutableX extends recovery despite $69 million IMX token unlock

ImmutableX extends recovery despite $69 million IMX token unlock

ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

More Bitcoin News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP