Bitcoin experienced a turbulent start this month, plummeting over 5% on Tuesday following Changpeng Zhao’s (CZ) resignation as Binance CEO. However, the flagship cryptocurrency demonstrated remarkable resilience, surging to $38,360 on Friday to mark its highest level since May 2022, before consolidating over the weekend.
Major altcoins such as Ethereum, XRP, Solana, Dogecoin, Shiba Inu, and Cardano have been exhibiting strength, defying the regulatory headwinds that have rocked the crypto industry over the past week.
Notably, apart from enthusiasm around the halving about 150 days away, Bitcoin’s robust performance is driven mainly by the growing optimism surrounding the potential approval of an Exchange-Traded Fund (ETF). Reports indicate ongoing discussions and collaboration between institutional investors and the U.S. Securities and Exchange Commission (SEC) on their spot Bitcoin ETF applications, hinting at a potential influx of institutional funds into the crypto ecosystem.
Crypto analytics firm Sentiment highlighted Bitcoin’s growth in a Friday tweet, drawing attention to the significant role played by the top 100 largest Tether addresses. According to the firm, these addresses injected a staggering $1.67 billion into the market over the past six months, reflecting a 9.7% rise in their buying power.
“If whale $USDT buying power continues increasing, $40K+ $BTC is likely to be around the corner.” The firm wrote.
Adding to the positive sentiment, “Crypto Sunmoon,” an analyst from CryptoQuant, offered insights into Bitcoin’s potential future trajectory. The analyst highlighted a historical pattern, where there has been a sharp rise in the percentage of Bitcoin held on U.S. exchanges in the lead-up to Bitcoin bull runs.
As per the pundit, this percentage decreases as the bull run commences, leading to a significant surge in Bitcoin’s price. Interestingly, with recent regulatory developments affecting Binance and its CEO, Coinbase’s reserves saw an increase of approximately 12,000 BTC. In comparison, Binance experienced a decrease of 5,000 BTC over the past week or so.
Elsewhere, prominent crypto analyst Caleb Franzen pointed out the significance of the weekly Heikin Ashi candles, noting that Bitcoin was on the verge of securing its 10th consecutive green weekly Heikin Ashi candle, a feat unseen since Q1 2021’s 11-week streak. Franzen, pointing to the bullish momentum suggested by these candles, tells his readers, “Just know that consecutive green candles are bullish.”
He further conveyed heightened optimism, especially in the wake of Bitcoin’s successful double-retest of the 200-week moving average cloud.
“After a perfect double-retest of the 200-week moving average cloud and rebound, it’s easy to be bullish right now.” He added.
At press time, Bitcoin was trading at $37,583 after a 2.15% surge over the past 24 hours.
