All major digital tokens were flying high on Monday, bolstering investor confidence. Bitcoin reached a three-month high, Dogecoin increased by almost 8%, and Avalanche increased by 6%. Shiba Inu and Ethereum both increased by 5%. Today’s momentum has remained consistent.
BTC Price Action
The price of bitcoin soared to a new three-month high Monday, hitting $47,765. The BTC price is presently very close to the January 02 high of $47,989, which was reached in 2021. After six consecutive green daily candles, the world’s largest cryptocurrency is up nearly 27% in the last two weeks.
The upward swings have been attributed to a number of bullish factors that have been emerging throughout March, including a shrinking supply of bitcoin on crypto exchanges, according to analysts.
What’s powering the run?
A renowned crypto analytics business is investigating what’s going on behind the hood of Bitcoin to determine what’s driving the cryptocurrency’s recent climb.
Glassnode claims in a new video that short sellers, or those betting on a protracted drop in Bitcoin’s price, were responsible for carving out a bottom for the cryptocurrency.
It explains that when we have very dramatic upswings, we usually have short liquidations .People become quite accustomed to it as a result of a market trend.
They can watch it falling down, down, down.They eventually get enough confidence to say, “You know what? I’m tired of being squeezed out of my long position. I’m going to go short.” They did it at the exact bottom, which is impressive, but then they are squeezed out in the opposite way, and the trend begins to shift , says analyst
The shift in trend appears to have started on February 24th, when short liquidations soared while BTC traded around $37,000, according to Glassnode’s chart.
Short sellers are fueling BTC’s first surge, but Glassnode points out that the rally won’t last without organic demand. According to the analytics business, it is looking at the number of Bitcoin addresses with a non-zero balance measure to prove that investors are still buying BTC despite the macroeconomic environment.
Another measure that reflects the growing desire for Bitcoin, according to Glassnode, is the number of accumulation addresses in BTC. The statistic is defined by the amount of addresses that continue to add BTC to their stacks, according to the research firm.
According to Glassnode, there has been a large increase in overall accumulation balance, indicating that more and more people are stacking in the near term. It paints a picture of a tight pinch on one hand, but it also looks that there is genuine organic demand that can be seen by address growth on the other.
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Source: https://coinpedia.org/bitcoin/bitcoin-btc-resumes-a-hike-heres-what-is-fueling-the-rally/