Bitcoin (BTC) Price Has Formed A Historical Bottom; Here’s Why

Published by

Updated 30 Mar, 2022 | 02:26:28 PM UTC

Bitcoin (BTC) Price Has Formed A Historical Bottom; Here’s Why

The Bitcoin (BTC) long-term total cost base has fallen to an all-time low, as per the on-chain data firm Glassnode. Moreover, Bitcoin is undergoing a very healthy redistribution of supply since the price fell from its highs. This week, the bitcoin price has broken its consolidation zone to rise higher above $48,000k.

Bitcoin Undergoing Healthy Redistribution

According to on-chain data from Glassnode, the LTH Realized Cap 30-day Net Position Change Z-Score has hit a historically low. It suggests that long-term holders of Bitcoin cost basis have declined significantly. Moreover, a very healthy redistribution of Bitcoin supply from higher prices is taking place. And, the new floor range is between $38k and $45k.

LTH Realized Cap 30-day Net Position. Source: Glassnode

Under the consolidation zone between $35k-$45k, Bitcoin has seen a heavy reshuffling of its supply. There is a decrease in long-term holders and an increase in short-term holders. Thus, giving the opportunity to Bitcoin holders to increase accumulation as the price could rally from here.

Bitcoin price has pushed beyond the resistant levels as a result of the accumulation of Bitcoin by the LUNA Foundation Guard for its stablecoin UST, Russia considering accepting Bitcoin for oil and gas payments, and ExxonMobil plans to mine bitcoin with natural gas.

Moreover, whales and crypto influencers such as Michael Saylor and Elon Musk are accumulating Bitcoin (BTC) for inflation hedge and store of value amid the rising inflation and oil prices.

The Rise in Bitcoin Price Amid Growing Adoption

Bitcoin adoption has grown significantly in recent years as people realize its benefits. According to CoinMarketCap, the price of Bitcoin rose nearly 12% in the week, with the current price trading near $47,076. At the time of writing, the current market cap is around $899 billion.

In the last 24 hours, the Bitcoin price is down 1.51% from the recent high of $48,086. However, as per the on-chain data, the price will increase to move higher towards $50,000, the next psychological level.

Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by

Varinder Singh

Updated 30 Mar, 2022 | 02:26:28 PM

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.