Investor sentiment across the cryptocurrency ecosystem has seen a significant shift in the positive direction over the past week, despite events in the wider world. Currently, Bitcoin (BTC) is back above $43,500 and many altcoins are also witnessing double-digit gains.
Crypto Fear & Greed index. Source: Alternative
The ongoing conflict in Ukraine and recent actions taken by governments to limit access to banking services may have helped to shine a light on the value of holding cryptocurrencies, which offers some protection against uncontrollable events and what some might perceive as government overreach.
Data from Cointelegraph Markets Pro and TradingView shows that the price of BTC has oscillated between $43,350 and $45,400 on March 2 as the world awaits some form of resolution to the current conflicts.
BTC/USDT 1-day chart. Source: TradingView
Here’s what several analysts are saying about the recent price action for BTC and where it could be headed in the weeks ahead.
Bitcoin accumulation has begun
The sideways price action for Bitcoin has been largely influenced by the fact that the top cryptocurrency “has entered a volume gap” according to crypto analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart highlighting the lower demand in the current price range.
BTC/USD 1-week chart. Source: Twitter
Rekt Capital said,
“Volume Gaps tend to get filled entirely. Major Volume Gap resistance lies ahead at the ~$48,000 region, which happens to be the mid-range area of the macro range.”
Evidence that the price is likely to head higher was provided by Ki Young Ju, CEO of the on-chain analysis firm CryptoQuant. According to Ki, the “BTC accumulation phase” has begun.
Bitcoin UTXO age bands. Source: Twitter
According to Ki, “newbies who joined last year are evolving to long-term holders” as the market cap for Bitcoins that are older than six months now accounts for 52% of the total market cap of BTC as opposed to 13% at the recent cyclic top.
He said,
“Unlikely to hit the previous low ($28,000) as the newbies will wait for other newbies in the next cycle.”
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