Bitcoin has rebounded above $42,000 after briefly dipping below $39,000 earlier this week. Despite increased selling pressure, the overall market sentiment remains optimistic, as evidenced by the 1.7 million BTC ($68 billion) held in Bitcoin accumulation wallets, according to CryptoQuant CEO Ki Young Ju. This trend indicates growing confidence and trust in the leading crypto asset among investors, who increasingly view Bitcoin as a store of value or long-term investment.

Bitcoin inflows to accumulation wallets have reached a 5-year peak, including transactions to custodial services like Coinbase Custody. This accumulation pattern suggests a reduction in market supply, potentially driving up prices. The recent downward pressure can be attributed to heightened selling activity by prominent Bitcoin holders, such as sharks and whales, seeking to leverage their profits. However, steady accumulation by other entities is expected to push Bitcoin's value higher, especially with the upcoming fourth halving event in April. Additionally, the number of active Bitcoin addresses has surpassed 1 million, signaling increased participation and usage of the crypto asset.