Following an unexpected rally, Bitcoin has notably rebounded, surpassing the $71,000 mark, hinting that the anticipated pre-halving dip may have concluded.
This surge came on the heels of a significant day of accumulation, as reported on March 25 by blockchain analytics firm Santiment, marking it as one of the most substantial in recent years.
Santiment highlighted that this rebound caught traders off guard, particularly as “key stakeholders” amassed a considerable amount of Bitcoin over the weekend.
Specifically, wallets categorized as “sharks” and “whales,” holding between 10 and 10,000 coins, accumulated 51,959 BTC on March 24, equating to approximately $3.4 billion.
This acquisition represented 0.263% of Bitcoin’s total available supply at the time.
With the Bitcoin halving event approaching in about three weeks, around April 19, Santiment suggested that the continued growth of these wallets could positively influence the overall cryptocurrency market caps.
Contrary to the expectations of some crypto analysts who anticipated a more significant drop ahead of the halving, Bitcoin’s decline was relatively modest.
Data from CoinGecko indicated that Bitcoin’s price only fell about 17% from its all-time high of $73,738 on March 14 to a low of $61,494 on March 20. This downturn mirrored the pre-halving retracement in 2020 closely.
Technical analyst Rekt Capital observed that the current retracement is nearly identical to the 2020 pre-halving dip, with Bitcoin’s price reducing by approximately 18% this cycle, compared to just over 19% previously.
He had earlier speculated that this year’s pre-halving retracement would likely be milder and shorter than in past cycles.
Kaiko, a crypto research firm, examined the market’s response to last week’s dip on March 25, finding that selling pressure increased after the U.S. market closed.
Their analysis pointed out that liquidity in the cryptocurrency market is fragmented not only across different exchanges but also among various trading pairs.
At the time of reporting, Bitcoin was experiencing a 5.2% increase in its value, trading at $70,252, after reaching an intraday high of $71,000 on March 25.
This recent movement underscores the volatile nature of the cryptocurrency market and the significant impact of strategic accumulations by large-scale investors.
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