- Bitcoin price climbs above $40,000 in a bullish trend reversal as demand from institutional investors climbs.
- $2.57 billion worth of Bitcoin has been pulled out of exchanges since March 28, fueling a bullish narrative among investors.
- Analysts set a target of $55,000 for Bitcoin price in the ongoing rally, as the market structure remains bullish.
Bitcoin price has recovered from the drop below $40,000, spurred by demand from institutional investors. Ki Young Ju of CryptoQuant believes institutional buying is key in the Bitcoin price rally.
Bitcoin price rally could be fueled by institutional buying
Bitcoin price started a rally crossing the $40,000 level earlier today. Proponents have identified three critical reasons for the comeback in BTC price. Rising institutional demand, a spike in the number of whales on the Bitcoin network and massive BTC outflow across exchanges like Coinbase Pro are the three key reasons fueling the current bull run.
Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, believes institutional buying could emerge as a key narrative in the crypto market once again.
There is a spike in Bitcoin outflow: 64,233 BTC have been pulled out of crypto exchanges since March 28. $2.57 billion worth of Bitcoin has been scooped up by investors and pulled out of the circulating supply.
Bitcoin balance on exchanges
Coinbase Pro, one of the largest crypto exchanges, has shifted a large volume of Bitcoin, a total of 30,000 in a single day this week. A spike in BTC buying among whales and large wallet investors is considered a bullish sign for the asset’s price.
Bitcoin exchange reserve on Coinbase Pro
A leading crypto analyst, Ali Martinez noted that 16 new whales joined the Bitcoin network over the past week, buying a minimum of $39 million in BTC. The rise in whales on the network increases the buying pressure on the asset and is fueling the Bitcoin price rally.
Addresses with a balance greater than 1,000 $BTC have surged since Apr 8. Roughly 16 new #BTC whales have joined the network.
— Ali Martinez (@ali_charts) April 18, 2022
The increasing buying pressure might seem insignificant, but each of these new addresses acquired a minimum of $39,000,000 worth of #Bitcoin. pic.twitter.com/l3CoHyQj3A
@AltcoinSherpa, a pseudonymous crypto analyst and trader, believes the current bullish market structure in Bitcoin implies no significant change in long-term price targets. While altcoins may have another leg up, Bitcoin price will hit the $55,000 target.
$BTC: Absolutely nothing has changed for me, glad that I have been traveling during this crab action. I'm still bullish, still a technically bullish market structure. I think alts are going to have 1 more leg up; move up to 55k and then we'll see after. #Bitcoin pic.twitter.com/eQx1C9mUvr
— Altcoin Sherpa (@AltcoinSherpa) April 19, 2022
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.
Recommended Content
Editors’ Picks
Chainlink price still trapped in range despite exhausted macro downtrend
Chainlink (LINK) price is cooking up a recovery rally after exhausting consolidation beneath a macro descending trendline. However, it remains confined within a range in the weekly timeframe, but an opportunity for breaking out could present soon.
Bitcoin SV price rises by 30% in a day as CEO resigns amid controversy
While Bitcoin price might not have been able to note a rise over the past day, its namesake is making the most of the relatively calm market. Bitcoin SV price shot up significantly after a major development in the network’s ecosystem took place over the past few days.
SUI price crashing by 7% sets a precedent for cryptos ahead of $36 million worth of token unlocks
SUI price action fell sharply over the past day, emerging as a leader of the cryptocurrencies witnessing a price fall. This is expected to worsen as token unlocks worth $36 million are scheduled for this week.
Bitcoin price macro outlook remains uncertain, analyst says
Bitcoin (BTC) price is still not in the clear, according to analyst and trader Rekt Capital, who explores the price action on a macro perspective. It comes after the big crypto leaped almost 5%, testing the $28,600 levels before a retraction.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.