- A Bitcoin accumulation address made a significant purchase following the latest bout of market decline
- Charts highlighted the possibility of the price crossing into the $90,000-zone
Bitcoin [BTC] has managed to maintain a steady price threshold over the past couple of days, hinting at the potential rebirth of a market rally.
And yet, over the past week, the crypto has recorded a slight decline of 3.81% to trade at $81,016 at press time. According to AMBCrypto, buying volume in the derivatives and institutional markets has been higher lately and this could soon trigger an upward move.
Will Bitcoin add another $13,000 to its price?
A CryptoQuant report found that a Bitcoin accumulation address, known for buying the asset at strategic market positions, recently made its second-most significant purchase over the past three years.
Following the price drop to the $76,000-region, the address bought 48,575 BTC, worth approximately $3.6 billion – Its largest single-day purchase since acquiring 95,000 BTC on 01 February, 2022. Interestingly, both transactions were worth roughly the same amount in dollar terms – $3.6 billion.
Source: CryptoQuant
A significant purchase such as this from a whale account typically implies that an incoming rally could be on the horizon. This could lend confidence to the overall market, leading to more buying activity.
Further analysis revealed that if the rally begins, the asset would likely have a free run until it hits the $94,500 zone. This is a level where notable selling pressure exists, which could push the price lower. If this rally materializes from its press time price level, BTC would have added $13,480 to its dollar value.
Source: Glassnode
Other markets support a run-up
Institutional and derivative market traders have been placing bets on a push for Bitcoin higher up the charts.
At the time of writing, the fund market premium, which tracks institutional investor activity, highlighted ongoing buying activity.
The institutional investor narrative is determined based on the price difference between Bitcoin on institutional-focused platforms and retail-focused platforms (like Binance). When this difference is positive, as in the case of Bitcoin right now with a reading of 0.15, it is a sign of net buying activity in the market.
Source: CryptoQuant
In the derivatives market, sentiment has remained bullish as well, with more buying than selling volume over the past 24 hours.
Based on the Taker Buy/Sell Ratio, after a previous day dominated by sellers, buying has resumed too. This activity seemed to be clearly traceable on the chart, marked by a notable green spike, leading to a press time reading of 1.09.
Miners join the race
Despite the decline Bitcoin saw from its all-time high above $109,000, there has been sustained growth in its hashrate.
Hashrate refers to the total computing power used by miners to process and secure transactions on a proof-of-work blockchain like Bitcoin. A growing hashrate implies the network is becoming more secure, adding to investor confidence.
Source: CryptoQuant
According to crypto analyst Ki Young Ju, based on its hashrate, Bitcoin could potentially rally to a market capitalization of $5 trillion from its press time valuation of $1.6 trillion. This would mean an approximate rally of 3x, pushing the asset to $243,000 on the charts.
