Last week, BTC added 9.5%. The fact that the largest cryptocurrency is hovering around $48K makes us think about a continuing bull trend. The minimum bitcoin balance on all exchange floors signals the impending bull market. Even demand for GBTC's shares is rising in spite of an increase in the digital asset itself, revealing BTC's high investment potential. Nevertheless, there are certain negative factors able to disrupt the bull run of BTC/USD.
A mass sell-off of the digital asset in the Asian market is one of them. Yesterday, Japan announced new sanctions against Russia banning exports of gold to the country. In this light, gold trading liquidity increased, and bitcoin came under pressure. Apart from that, the side chain of crypto game Axie Infinity suffered a security breach. Hackers successfully drained some $625 million, which makes it the biggest crypto heist in history. Clearly, this could have a negative impact on crypto investment flows.
Market concerns are growing amid a mass sell-off of BTC by mining companies. CryptoQuant says exchanges received a bitcoin inflow spike between March 29 and March 30. Indeed, over the past 6 months, mining companies have been heavily investing in BTC, accumulating record volumes. Nevertheless, it poses no risks to the bull trend of the digital asset. On the contrary, free coins on exchanges provide an opportunity to redistribute assets among more targeted investors.
The ratio of miners to other BTC investors is relatively small. In other words, mining pools have a minor impact on the quotes of BTC/USD. Thus, although BTC saw an outflow of 4,780 coins, their number then grew by 6,140 coins. This means miners are leveling their buy/sell ratio. As of March 31, miner companies have increased their investments in BTC by 5%. All in all, despite over-the-counter trading and a partial sell-off, all the coins turned back to investors' wallets, so there is no pressure on bitcoin quotes.
Likewise, local sell-offs by long-term BTC holders have no effect on the uptrend. At the same time, bullish momentum somewhat slowed because the price had encountered resistance in the zone between $47.5K and $48.2K. Bitcoin is now at a consolidation stage to extend the move to $50k-$51k. Technical indicators have started to move down to middle values. So, volatility is unlikely to increase. Meanwhile, the MACD indicator starts to move sideways, indicating that the mid-term sideways trend is gradually coming to an end. In this light, should the price retest the support zone of $44K-$45K, the sideways movement in the market would extend. Overall, taking into account on-chain and bullish activities, bitcoin could rise to the $51K barrier.
