The price of Bitcoin has been chopping around $43,500 for nearly a month, which has subdued the confidence of the market participants. With the fresh bullish trend, the markets appear to have rejuvenated the likelihood of initiating a fresh bullish upswing soon. The BTC price underwent a parabolic recovery and surpassed $45,000 in a surprising move. However, the rally continued to soar to reach beyond $46,000, indicating the markets were preparing for the Bitcoin halving event.
Besides, the major altcoins like Ethereum, Solana, Avalanche, Chainlink, Polygon, XRP, etc. and many more continue to remain consolidated above their respective support levels. The bearish sentiment that prevailed over the BTC price rally over the past few weeks is believed to have fueled the rally. Moreover, a huge shift in the focus of the traders has been witnessed, which may keep the bullish momentum high in the coming days.
With this, the traders appear to have become extremely bullish on Bitcoin as they store their assets off the exchanges. As per the data from Santiment, the balance over the exchanges has plunged to levels last seen in December 2017, during the beginning of the 2017-18 bull run.
This signals a rise in Bitcoin’s dominance over the other altcoins, as the price soared sharply over $46,000 today. It is also worth noting that the balance on the exchanges has been consistently dropping, suggesting the traders have been optimistic about the token since the beginning. Hence, they constantly accumulated the tokens without having the intention of trading them for other tokens or selling them.
Therefore, they have remained inactive and safe in the wallets, by which selling pressure failed to accumulate. As per the data from CryptoQuant, this inactive Bitcoin supply percentage has soared to a new ATH of around 70%, never seen since inception.
This determines the bullish mindset of the market participants who speculate on a healthy bull run in the coming days. With the pre-bull run accumulation getting stretched to such a large extent, the possibility of a strong and extended rally emerges. Therefore, if the Bitcoin (BTC) price manages to sustain above the gains until the weekend, then there could be no hindrance for the token to hit the $50,000 milestone this month.