Bitcoin has been in a long-term uptrend since March 12. The digital asset managed to recover and it’s solidly trading above $9,000. Bitcoin has been able to outperform traditional stocks and gold for the past month and continues surging.
The upcoming halving event, less than 6 days away, is clearly having a big impact on Bitcoin’s price. The next clear target for Bitcoin bulls is $10,000, a level that seemed far away in mid-March.
Most traders are currently in long positions, BitMEX Longs vs Shorts show a 78% dominance of longs with around $261 million worth of Bitcoin. Similarly, long positions have been going up on Bitfinex for the past month although they have dropped significantly in the last 3 days.
The Number of Wallets Holding More Than 1000 BTC Has Increased
It seems that ‘whales’ are resurfacing after the catastrophic event on March 12. According to data from Glassnode, the number of wallets holding 1000 BTC or more has increased tremendously over the past 2 months. In fact, the number of whales has been increasing since January 2020.
Some users have noted that even whales had to sell at the bottom, however, the pattern is clear. Others have pointed out the fact that more whales are present is not necessarily good for the purpose behind Bitcoin. Decentralization and democratization of money is Bitcoin’s priority but what will happen when 1% of people own 99% of Bitcoins?
However, when it comes to the price of Bitcoin, more whales does mean a higher price as there is low selling pressure. It is clear that Bitcoin’s halving event is creating a lot of buying pressure and driving the price up significantly. Unfortunately, at the same time, it is also opening the doors for a long squeeze and possible crash on the day of the event.
Technically speaking, Bitcoin is doing extremely well on its weekly chart and it’s actually close to an uptrend. Most indicators are bullish and are signaling more bullish action in the future.
Will Bitcoin continue with its recent uptrend after the halving event, or will we see a crash and consolidation after such a huge rally?