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- The Bitcoin price has broken out of the consolidation zone between $43,000 and $52,000, heralding the end of the correction.
- Bitcoin buyers have established the largest accumulation level since $11,000 in the range between $45,500 and $48,900.
Possibly sooner than expected, the correction may be over. After Bitcoin recorded a new high of around $58,300 on February 21, the price went into correction mode. As CNF reported, some analysts expected the correction to last until the end of March. Historically, this month is one of the weakest of the year.
However, today’s rise in the Bitcoin price to as high as $54,500 (on Coinbase) could herald the early end of the correction. Analyst Scott Melker aka “The Wolf of all Streets” shared with his 250,000 followers on Twitter that Bitcoin has broken through what numerous analysts have called the key resistance at $52,000.
Have fun not staying poor. Local range highs broken and retested as support.
The correction “should” be over with fresh highs incoming. See you on the other side.
In this respect, a decisive impetus for the Bitcoin price may once again have come from the traditional financial market or the narrative of a correlation, which in recent days is at its highest level since the crash in March 2020. With the Dow Jones hitting a new all-time high yesterday, Bitcoin is once again on the rise.
As expected, most markets reacted positively to the U.S. government’s 1.9 trillion stimulus package. The package gives new life to the Bitcoin narrative as a hedge against unrestrained money printing by governments and central banks worldwide.
#Bitcoin reaches $1 trillion on the eve of Congress printing $1.9 trillion.
— Documenting Bitcoin 📄 (@DocumentingBTC) March 9, 2021
In addition, Bitcoin is likely to have benefited from a number of bullish news stories. Norwegian giant Aker has launched a crypto company called Seetee and invested $58 million in Bitcoin. Moreover, the company announced its investment will continue to increase “significantly” in the future.
In another headline, New York Digital Investment Group (NYDIG) announced a $200 million growth capital round. The technology and investment solutions provider for institutional bitcoin investors received the capital from strategic partners Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Soros Fund Management and FS Investments.
Last but not least came confirmation of the rumor that PayPal will buy crypto security firm Curv. According to the official press release, the Curv acquisition is to “accelerate and expand initiatives supporting cryptocurrencies and digital assets.”
Will the Bitcoin price never go below $45,500 again?
A hugely bullish factor was also highlighted by data analytics firm Glassnode. Bitcoin buyers have established the largest accumulation level in the $45,500 to $48,900 range since breaking through the previous all-time high of $20,000. In their latest newsletter, Glassnode writes with reference to the chart below:
In fact, if we look at the UTXO Realized Price Distribution, the on-chain support level at $47,173 is the largest since prices were $11k. Furthermore, the block of on-chain activity shown in green below, is not just a specific floor price, but instead a large support zone.
We can see sustained and significant volume has transacted between $45.5k and $48.9k. This range now represents one of the largest on-chain BTC accumulation levels in history, certainly the largest since the last cycle’s $20k ATH was breached.