Recent data from on-chain analytics is pointing towards a noteworthy surge in Bitcoin's value, and the main catalysts seem to be the increasing accumulation by Bitcoin whales and a rising interest from institutional investors. Over the past five days alone, large Bitcoin holders have acquired over 30,000 BTC, worth approximately $1 billion, which is a clear indication of aggressive accumulation.
This renewed appetite for Bitcoin among major players in the crypto space coincides with a surge in institutional activity, with the number of transactions exceeding $100,000 on the Bitcoin blockchain hitting new highs in 2023. These large transactions gained momentum following Blackrock's ETF application, and they have now surpassed this crucial threshold, mirroring Bitcoin's ascent to new yearly peaks.
For the first time since May 2022, Bitcoin temporarily crossed the $35,000 mark, experiencing a notable 14.44% increase in value over the last seven days. Although it reached new yearly highs at $35,157, it encountered resistance at this level, failing to break through.
What lies ahead for Bitcoin? In 2023, it has already gained more than 100%, and there are strong indications that it's in the early stages of a bull market. Not only are cyclical patterns aligning in favor of Bitcoin, but short-term trading activity is also heating up. Nevertheless, the Bitcoin market value to realized value (MVRV) ratio suggests that Bitcoin hasn't reached the overheated levels observed in previous bull markets. Historically, Bitcoin bull markets have peaked at over 300% MVRV, whereas the current figure stands at 150%, indicating that there may be more room for this bull run to extend.
The recent milestone of $35,000 represents the next critical resistance level for Bitcoin. Should it break this barrier, the next target could be in the range of $38,000 to $39,000, where 333,000 BTC were acquired. In the event of a market correction, there appears to be robust support around the $30,000 mark. Bitcoin's journey is certainly one to watch as it continues to make waves in the crypto world.