It looks like Bitcoin price is only in the middle of a bull run and may continue to rally after the BTC halving. The bullish potential of Bitcoin (BTC) is confirmed by investor behavior. Their level of confidence in the asset is now higher than in 2021.
Investors believe in Bitcoin
After hitting a new all-time high this month, BTC’s rally has stalled as the market cools. Many considered this a sign of a market top, but it may just be the middle of the cycle. This scenario is supported by investor confidence in Bitcoin and, in particular, by the indicators of relative realized profit.
Comparing profit taking in the current bull cycle and the 2021 cycle, one can see that investors are much more steadfast this time. In 2021, around the all-time high of $64,500, the realized gain was 3%.
However, at the moment this figure is at a maximum of 1.8%. This means that over the seven-day period, 1.8% of the market capitalization was recorded as profit. Investors are not selling their coins as actively as they were in 2021, indicating higher confidence.
This is confirmed by the consistent accumulation of the asset since February. Investors are actively replenishing their wallets, and in just 11 days of April, more than 10,284 BTC worth over $728 million were purchased on exchanges. This accumulation indicates investor confidence and suggests that they expect the price to continue to rise. These sentiments will likely be confirmed once the BTC network halving occurs.
BTC Forecast: Rally Expected
On the 3-day chart, Bitcoin is supported by the Wyckoff pattern, which identifies trends and potential reversals in the market. This technical analysis concept analyzes price and volume movements to determine accumulation and distribution phases in the market.
However, if the price of Bitcoin falls below the support level, the decline could reach $63,159. The loss of this level will deprive the bullish scenario of strength, which will lead to a correction to $60,000.
