by Gunay Caymaz
Investing.com – The bullish trend in the cryptocurrency markets in particular is still in effect. With the volatile price movements continuing, many analysts have begun to offer their short-term forecasts. Moreover, investors continue to closely monitor Blockchain data.
The common view in the market right now is that Bitcoin is advancing on a major resistance area. Kaleo, a crypto analyst with a significant following on Twitter, has a positive view of Bitcoin, but believes that the cryptocurrency is on the verge of a major rally.
In a CryptoQuant analysis, it was stated that the observed bullish momentum in Bitcoin has reached an important turning point. Assessing blockchain activity, the analytics firm sees an increase in selling activity by BTC miners and short-term traders as the increase continues.
CryptoQuant stated that according to the Miner Position Index, a large amount of Bitcoin has been withdrawn from cryptocurrency mining wallets in recent days. According to analysts at CryptoQuant, miners want to take advantage of Bitcoin’s relatively high price. In this sense, it is indicated that the rise may continue if market participants manage to overcome this wave of selling, which they have implemented successfully so far.
Offering a positive outlook on his Bitcoin post, Kaleo told his more than half a million followers that he is preparing for a major turnaround as BTC could surge to significant levels not seen since June. The analyst believes that if the current resistance level is broken, Bitcoin will see a rapid rally towards $30,000.
In his share, Kaleo compared the current price movement to the price movement from $3,000 to $14,000 in 2019 and stated that Bitcoin will rise quickly by withdrawing money from the altcoin market.
Are declining bitcoin reserves the biggest hurdle?
Along with the positive views on Bitcoin’s rally, some Blockchain data provides some warning signs that ordinary investors are hesitant about the current bullish trend.
What almost everyone agrees on is that this trend is supported by BTC miners and major cryptocurrency companies in order for Bitcoin to continue its course. However, the current expectation is that BTC mining reserves will continue to decline, as seen in CryptoQuant’s data.
Moreover, the fact that this trend is maintained is explained as the miners are still not making a decision about the mass sale of their assets. Therefore, it can be said that the current levels are considered as the decision-making stage.
Along with miners, the situation of cryptocurrency companies with large amounts of cryptocurrency in their wallets is also being watched closely. Especially with the collapse of FTX, institutions with large amounts of BTC in their wallets were exposed to negative conditions that continued until bankruptcy. This has led to a continued decline in cryptocurrencies, especially Bitcoin.
In short, in the process, although it is seen that institutional companies have not yet accelerated their investments in cryptocurrencies, institutional crypto stances could be decisive for the continuation of this trend.
In short, while some analysts say the trend will continue, there are those who believe that the current rally could be a “bull trap”. Thus, it seems that Bitcoin’s next move from its current level will be decisive for the direction of the trend.