Bitcoin is demonstrating phenomenal resilience as it shoots into what seems to be a fourth phase of mania speculation. At the same time, the biggest holders are deeply cutting their exposure. Analysis suggests that Bitcoin's upward trajectory may continue, supported by historical patterns and the market's capacity to absorb substantial sell-offs. The recent market activity, in conjunction with Ethereum’s newfound momentum, suggests an optimistic outlook for the next few weeks and maybe even months for the crypto space.
Addresses that belong to crypto wallets with 1,000 BTC or more have lost about 447,000 BTC during the last twelve months. All of this notwithstanding, Bitcoin continues to hold its own and show remarkable strength. The market did an impressive job absorbing a record 30 day sell volume as high as 61,000 BTC. Such extraordinary resilience speaks to the very solid fundamentals of the market. Bitcoin continues to hold upwards of $100k, one of the most important signs that it is the market leader.
Looking at our historical data, you can see Bitcoin usually goes through at least two, if not three waves of extreme greed before a market peak. Our Fear and Greed Index is currently at 2.77. This signals that the market is starting to move in the direction of a bullish candlestick first. What this positioning suggests is that Bitcoin’s current momentum may still have substantial upside potential left in it before a large pullback sets in.
Additionally, Ethereum’s power tends to lead the way on an overall altcoin season, which is a bullish development for Bitcoin as well. This dynamic between Bitcoin and Ethereum indicates a positive synergistic effect that may continue pushing the entire cryptocurrency market further ahead.
