Bitcoin (BTC) Looks Bullish as $30K Approaches, Here’s Why

Investor interest in Bitcoin has heightened amid turmoil in the Banking sector. A closer look at the on-chain metrics reveals that whales and long-term holders are now positioning for $30,000 BTC. 

Since the recent profit-taking trend on March 7, the average age of Bitcoin consumed has declined considerably. 

Bitcoin Long-Term Holders Positioning for More Gains

Bitcoin has consistently traded above $27,000 for most of the last two weeks. Turmoil in the banking sector appears to have recently reignited corporate and retail investor interest in Bitcoin. 

Signature bank and Silicon valley bank suffered bank runs, while a 166-year-old Swiss bank, Credit Suisse, also got bailed out in a dramatic turn of events in March 2023. Critical on-chain metrics reveal how renewed investor interest could accelerate the ongoing BTC price rally. 

According to the blockchain forensics platform, Santiment, fewer long-held tokens are currently being traded on the Bitcoin network. 

Since the recent spike on March 7 to 24.58 months, BTC Age Consumed has declined to 2.78 months as of March 27. 

Age Consumed shows the number of tokens changing addresses on a certain date, multiplied by the time frame they were last moved. When Age Consumed values increase, it suggests that long-standing network participants are divesting from the underlying asset. Conversely, a persistent decline, as observed above, signals that long-term holders are increasingly banking on the future price prospects of the BTC. 

Similarly, between Feb. 9 and March 23, a strategic group of whales added about 100,000 BTC to their holdings, worth approximately $2.5 billion. 

After taking a profit around the $22,500 range around March 7, it appears that the whales have started accumulating BTC to position for more gains ahead. 

Bitcoin whales typically have significant financial power, and such a prolonged accumulation trend can trigger a price surge. And considering the 100 – 1000 BTC whale cluster’s history of timing recent price rallies accurately, BTC holders can expect more upswing in the coming weeks if things remain the same.

BTC Price Prediction: All eyes on $30,000

The next target for BTC is $30,000, according to IntoTheBlock’s Global In/Out of Money (GIOM) data. The GIOM shows the current distribution of holders along the lines of their average purchase prices. 

If BTC can break its current resistance around $28,000, it will face minimal resistance until it reaches $30,800, where 1.36 million addresses may look to take some profit on their 536,000 BTC holdings. 

Still, BTC could enter a prolonged rally if the $30,800 resistance does not trigger a considerable correction. The next critical resistance would be around $39,000, with nearly 5 million wallet addresses holding 2 million Bitcoin.  

However, the bears could invalidate this bullish stance if the price of Bitcoin slips below $27,000. If the $23,000 support where 4 million addresses bought 1.54 BTC cannot keep the price slump at bay, the BTC could once again drop below $20,000. Around the $19,800 region, BTC would find another considerable support of 6 million addresses that bought nearly 3 million Bitcoin.