In a recent tweet by the co-founders of Glassnode, the question on everyone’s mind was posed: Where do we go next with Bitcoin? The popular cryptocurrency has reached a key resistance level at $30.5k, shortly after surpassing the significant milestone of $30k.
This has generated a surge in buying pressure, as indicated by the MACD crossing above the “0” mark, signaling a shift in momentum in favor of the bulls.
The next obstacles on the path to further gains are set at $32.5k and $34k, with the bulls keeping their sights firmly on the latter figure.
A report from Swiss Block highlights the current situation for Bitcoin bulls, emphasizing the considerable resistance zone the cryptocurrency faces at approximately $30.5k. This zone has become crucial following BTC’s breakthrough of the psychological barrier at $30k.
Although the price is currently in a consolidation phase after a rapid ascent, breaching this level has the potential to unlock further targets at $32.5k and $34k.
The MACD’s positive crossover at the “0” level reinforces the bullish sentiment by indicating an increase in buying pressure, hinting at a potential price surge in the near future.
Whereas, Jerome Powell, the chairman of the Federal Reserve, has hinted at the possibility of two interest rate hikes by the end of 2023. Should Powell follow through with these actions, it could lead to a significant rebound for the US Dollar.
While rate hikes have historically had a transient impact on Bitcoin’s price, its value is primarily driven by supply and demand dynamics, known as capital flow, rather than direct correlations with the stock market.
Long-term projections for Bitcoin remain optimistic, with the potential to reach new highs not seen since late 2021.
Bitcoin’s Long-Term Holders: Gradual Accumulation
Meanwhile, according to Glassnode, Bitcoin’s long-term holders have been gradually accumulating the cryptocurrency, amassing over 1.01 million BTC over the past 602 days. This has resulted in a total long-term holder supply of 14.47 million BTC, only 20,000 BTC shy of the all-time high value of 14.49 million BTC.
Additionally, the Bitcoin Realized Cap continues to experience net capital inflows, currently valued at $396 billion. Although this indicates significant expansion in the asset class’s valuation, it falls outside the exuberance typically associated with previous bull markets.
As Bitcoin faces its resistance at $30.5k, bullish indicators and gradual accumulation by long-term holders present an optimistic outlook for the cryptocurrency.
While external factors such as interest rate hikes may have short-term effects, the overall trajectory of Bitcoin’s price remains influenced by supply, demand, and the evolving dynamics of the market.
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