The Bitcoin price is trading at $66,981 as of 3:00 am EST, up 8% over the last 24 hours. The big crypto is attempting a recovery after the recent correction failed to provide a dip into a key range. The recovery could continue, ushering BTC into price discovery backed by increasing whale accumulation and network growth.
Data from market intelligence firm Glassnode shows that large investors have been adding to their holdings since the beginning of the year. According to the data below, the number of addresses with more than 10,000 BTC has increased by 5% between Jan. 5 and March 20.
An increase in whale accumulation could mean that institutional investors are bullish about an asset’s price and believe the price will grow. Whales accumulate assets strategically when they believe they are undervalued or have growth potential. For example, they have established long-term positions in BTC, believing in its strong fundamentals or the promise of future growth prospects.
One of the fundamentals driving large investors to Bitcoin is network growth. This is evidenced in the number of new addresses interacting with the network. More data from Glassnode reveals that the number of new addresses on the Bitcoin network has increased from a low of 308,743 in February to 379,116 at the time of writing.
Essentially, new addresses are used to illustrate user adoption over time, and in Bitcoin’s case, shows that the blockchain is gaining traction ahead of the upcoming supply halving.
Bitcoin price bounceback promises a rise to $120,000
The BTC price action has painted a rounded bottom technical pattern on the weekly chart as shown below. This was formed when the price dropped steadily from previous all-time highs of $69,000 hit in November 2021 before finding support around the $15,000 zone during the extended bear market in 2022. The price then rose throughout 2023, eventually hitting new all-time highs of $73,835 on March 14.
At the time of writing, BTC was fighting resistance from the pattern’s neckline at $69,000. A weekly candlestick close above this level would see the price rise to tag the all-time highs above $73,000 before entering price discovery.
Key levels to watch upward would be the psychological levels at $80,000 and $100,000 and, finally, the bullish target of the prevailing chart pattern at $123,170. This would mark an 83% uptick from the current price.
BTC’s bullish narrative was also supported by the positive relative strength index. The price strength at 82 suggested that the buyers were in control of Bitcoin’s price.
On the downside, the overheated condition displayed by the RSI would mean that the ongoing correction could continue for a few weeks, with areas between $60,000 and $55,000 being possible bottoms for the pioneer cryptocurrency.