After experiencing mild bearish pressure, Bitcoin (BTC) has seen a remarkable price surge, surpassing $31,000. The recent bullish market movement appears to have been triggered by positive comments made by BlackRock CEO Larry Fink, who referred to Bitcoin as “Digitized gold” and praised its resilience to inflation and economic volatility. Additionally, on-chain data analysis indicates that BTC’s market sentiment has significantly improved, with the weighted sentiment trending upward. Furthermore, the optimistic disposition among BTC miners, as reflected in the increased accumulation of Bitcoin reserves, contributes to the positive start of July. With this backdrop, the question arises: Can Bitcoin reach $35,000 in the coming weeks?
Positive Sentiment and Larry Fink’s Influence:
Larry Fink’s recent remarks about Bitcoin during a Fox News interview have had a noticeable impact on the cryptocurrency’s price. Describing Bitcoin as “Digitized gold,” Fink highlighted its resistance to inflation and economic fluctuations in any country. Following his comments, BTC’s price surged by 2% to reach around $31,500. On-chain data analysis indicates that market sentiment surrounding Bitcoin has experienced a significant improvement, with Santiment’s Bitcoin Weighted Sentiment witnessing a 24% positive shift from the end of June to July 6. This metric evaluates the general market perception of a crypto asset by weighing the number of positive comments against the negatives. The data suggests that Larry Fink’s positive comments have influenced market sentiment, potentially favoring a bullish trend.
Miners’ Bullish Stance:
The sentiment among BTC miners also plays a crucial role in the cryptocurrency’s positive trajectory. On-chain data reveals that BTC miners have maintained an optimistic disposition throughout the second quarter of 2023. The increase in miners’ reserves, as depicted in the IntoTheBlock chart, showcases their anticipation of future price gains. Between April 30 and July 6, miners have accumulated an additional 20,000 BTC, thereby bolstering the bullish sentiment. With miners currently holding approximately 1.93 million BTC, which accounts for roughly 10% of the total 19.4 million Bitcoin in circulation, their accumulation contributes significantly to the upward momentum of BTC’s price.
Price Prediction: $35,000 on the Horizon?
Based on the In/Out of The Money Around Price data, Bitcoin faces minimal resistance on its path to $35,000. However, to ensure a confident bullish breakout, the initial sell-wall around $32,350 must be cleared. If successful, the 170,550 addresses that acquired 80,000 BTC at a minimum price of $32,358 could trigger a mild reversal. Nevertheless, if the bullish momentum persists, Bitcoin could soar toward $35,000 before encountering significant resistance.
While a retracement below $30,000 could potentially grant control back to the bears, recent market behavior suggests that the 1.48 million investors who purchased 660,840 Bitcoin at an average price of $30,232 would likely hold firm. However, if the support level at $30,000 gives way, Bitcoin might experience another bearish reversal, potentially dropping toward $28,000.
Bitcoin’s recent surge above $31,000 has been fueled by positive sentiment generated by Larry Fink’s comments and the accumulation of BTC reserves by miners. The improved market sentiment and bullish stance among miners indicate a positive outlook for Bitcoin’s price trajectory. With minimal resistance on the way to $35,000, the cryptocurrency has the potential to continue its upward journey. However, caution should be exercised, as market dynamics are subject to change, and unexpected retracements could impact Bitcoin’s price in the short term. Investors and enthusiasts eagerly await theoutcome as BTC aims to reach the $35,000 milestone in the coming weeks.