Bitcoin price eyes recovery as whales accumulate massive amounts of BTC
- Bitcoin price is on track to post a massive recovery as accumulation by large wallet investors is on the rise.
- Bitcoin price held steady above $40,000 through Easter, and analysts believe the risk of capitulation is lower.
- Analysts have predicted a rally in Bitcoin price as it sustains above $40,000 and eyes a $47,000 target.
Bitcoin price rally could soon wipe losses of investors over the past two weeks. Analysts evaluate the Bitcoin price trend and set a bullish target at $47,000.
Bitcoin price recovery could occur on one condition
Bitcoin’s high correlation with tech stocks and S&P 500 has been one of the key reasons for the recent pullback in price. Interestingly, proponents believe Bitcoin price is now in a position to recover from its drop in price, as large wallet investors buy the asset.
Whales have started accumulating Bitcoin, through the recent dip. As large wallet investors add more Bitcoin to their portfolio, the assets supply on exchanges reduces. At the same time, there is a reduction in the circulating supply of Bitcoin. An increased demand for Bitcoin and massive exchange outflows are the two main reasons for the price rally.
Bitcoin price managed to remain stable above support at $47,000 through Easter, and analysts have concluded that the risk of capitulation in BTC is now lower.
@KevinSvenson_, a crypto analyst and trader, has a long-term bullish perspective on Bitcoin price. Svenson shared his outlook in a tweet.
Discussing why #Bitcoin market psychology is mirroring $6K pre-capitulation.
— Kevin Svenson (@KevinSvenson_) April 16, 2022
Long Term - Bullish.
Medium Term - I see downside risk. pic.twitter.com/reAn6qHg0p
FXStreet analysts have identified hurdles on Bitcoin’s path to $50,000. Analysts identified the bullish crossover between the 50-day and 100-day moving averages that could fuel the Bitcoin price rally.
Analysts believe the upside for Bitcoin price is capped, and the price tried moving above it at $43,516 and failed.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
