Over the past two weeks, bitcoin has significantly recovered. On March 31, 2022 the cryptocurrency broke through the range of $32,000-$45,6000. The asset was consolidating within this range for more than 2 months. However, despite positive signs and renewed investment flows, the bear market remains relevant.
First, let's state the obvious facts. Despite 2-week uptrend, the asset has not broken through the range of $32,000-$45,600. Meanwhile, the market volatility was low and investment flows had an upward momentum. However, the breakout was not powerful due to lack of activity of major buyers. Moreover, the trading volume is not high despite the growing investments. This suggests that bitcoin continues to accumulate and attract different types of investors. In other words, BTC is facing a final stage of the accumulation period. The BTC/USD pair rose gradually which is indicated by the size of green candles. As seen on the chart, it is not possible for the pair to break through the current range of $32,000-$45,600.
Meanwhile, the pressure on bitcoin is increasing due to the number of addresses that have not moved bitcoin over a year reaching an all-time high. Gradually, this category of investors will start to lock in profits and sell off their BTC holdings. In case of a bullish rally, local sell-offs do not affect the price movement as buyers' activity remains high. In the current situation, even small sales increase pressure on the BTC/USD pair. Notably, some miners have also started selling their bitcoin holdings as part of profit taking. According to Glassnode, about 7,000-10,000 BTC have been sold in the past 30 days.
These moves do not fundamentally affect the upward movement of the cryptocurrency. However, they significantly slow down the price growth. The BTC holding on exchanges has reached a three-year low, which is a clear signal of future bullish rally. Moreover, there is an increase in the number of unique addresses resembling the bullish trend of 2017. Large companies are ready to accumulate BTC before the start of an uptrend. MicroStrategy took out a $205 million loan against its own digital assets to buy bitcoin. During March, Terraform Labs invested at least $1.2 billion in bitcoin to secure stablecoin.
The above mentioned facts indicate the final stage of the bear market and the cryptocurrency's gradual movement to a bullish trend. Therefore, the current situation with BTC is logical. The asset is near the final resistance area in the consolidation stage. A local price decline to the support area of $44,000-$45,600 is possible due to the growing pressure of sellers. Technical indicators confirm the probability of price decrease. However, it is evident that bitcoin will overcome the level of $50,000 in the coming months and begin the upward movement to the range of $60,000-$64,000.
