After a solid breakout above $50,000 earlier this week, Bitcoin’s (BTC) price has consolidated between $52,500 and $51,700 in the past two days. The flagship coin has enjoyed increased buying pressure from deep-pocketed investors since spot Bitcoin exchange-traded funds (ETFs) were approved in the United States.
According to on-chain data analysis provided by market intelligence platform Santiment, Bitcoin whales acquired more than 100,000 Bitcoins worth over $5 billion in the past ten days. Interestingly, the Bitcoin miners only produced a maximum of 9,000 Bitcoins during the same period, thus indicating a huge supply against demand shock.
Bitcoin Price Expectations in the Coming Weeks
Bitcoin’s price has surprised the bears in the past few weeks, and analysts believe the bullish momentum could be sustained soon. This week, a solid Bitcoin price above $50,000 will propel the flagship coin to the next psychological resistance level around $58,000.
With the Bitcoin price against several global currencies already trading the 2021’s ATH, the US dollar is no exception. Furthermore, the recent CPI data suggested that the U.S. dollar inflation will stay for an extended period.
Precautionary Signs
However, the heightened crowd enthusiasm on crypto bullish sentiment could result in a sudden market correction. Moreover, on-chain data provided by Glassnode shows that Short Term Holders (STH) have recorded their highest net realized profits since 2021.
Historically, Bitcoin price has reacted with a sudden market correction as short-term holders reached the highest profit levels. In case of a sudden sell-off in the coming weeks, Bitcoin could find a solid support level of around $41k.
