Bitcoin (BTC) was on the verge of extending its winning streak to nine days – but only just – as the world’s largest cryptocurrency’s recent price momentum appears to stall.
As of press time, the price of bitcoin was about $47,026, down 1.67 percent from yesterday.
The cryptocurrency had risen for eight days in a row, rising from roughly $40,000 to a new 2022 high of around $48,200 on March 28.
“Based on recent price activity, it appears like BTC is consolidating inside a range and has an opportunity to climb higher,” according to Nansen, a blockchain analytics platform. “There is other clear evidence that the market’s risk appetite has risen.”
According to Nansen, Ethereum gas fees have recently been extremely high, which is often a sign of a shift toward more risk-taking investment behavior.
“Bitcoin fell in the early hours of the morning when the world’s largest blockchain game, Axie Infinity, was hacked for $625 million,” Global Block reported in its newsletter. “The decline has been brought up as bitcoin remains above $47,000, demonstrating incredible resilience despite the hack news.”
The breach occurred in cross-chain bridges protected by a single centralized computer.
MacroStrategy, a wholly-owned subsidiary of enterprise analytics and mobility software firm MicroStrategy (MSTR) that invests in bitcoin as its primary business plan, has secured a $205 million loan from Silvergate Bank, which is backed by bitcoins.
MacroStrategy can utilize the loan to buy bitcoin, pay the loan’s interest and fees, or for MacroStrategy’s or MicroStrategy’s general corporate needs.
After taking a hiatus on Tuesday, Luna Foundation Guard (LFG), a non-profit focused on UST, resumed buying the largest cryptocurrency. This week, it purchased 5,773 BTC for $272 million.
“MicroStrategy and Luna Foundation Guard’s buy pressure is understandably leading to a significant short-term uptrend,” Global Block said.
“Now that MicroStrategy and Terra have ceased their purchase, it could just be a simple lull,” said Jason Deane, chief bitcoin analyst at Quantum Economics. “However, following an eight-day run, it could simply be a moment of consolidation.” ”
“These are often regarded as a bullish indicator,” Deane told CoinDesk, “since it provides the market time to construct a new foundation on which to make additional price discovery.”
Deane also stated that the number of HODLers (buy-and-hold investors) is rapidly expanding, favorable for bitcoin’s price. This reflects the long-term confidence of bitcoin investors.
Bitcoin is currently trading at $47,220, up 0.06 percent from 24 hours ago.
Bitcoin Price Prediction: Analysis of Performance
Bitcoin has dropped from its previous high of $48k, and some indicators point to a drop even deeper. However, neither Google Search data nor social media opinion support such a shift. We might see a minor pullback before things flare up on the upside again.
Since March 14th, Bitcoin has increased by 25%. In that time, the percentage of holders who lost money has dropped by half. As a result, some investors are taking profits and reinvesting them in lesser cryptocurrencies such as Zilliqa and STEPN, which have seen significant price increases in the last two days. STEPN reported a $3.8 million profit.