According to Bank of America (BofA) strategists Alkesh Shah and Andrew Moss, Bitcon’s (BTC) impressive rally since the onset of 2023, which has seen the cryptocurrency’s value surge past $30K, will continue if flows between cryptocurrency exchanges and personal digital wallets remain stable.
The world’s largest token has been witnessing a spectacular spell since the beginning of this year. Although Bitcoin (BTC) is at a record low from its all-time high in November 2021, the digital gold has performed significantly well in the Q1 of this year. On April 11, the largest digital asset breached the $30,000 level hitting a 10-month high since June 2022.
The flagship token is up almost 80% so far this year. Despite a slight drop in the last 24 hours, Bitcoin (BTC) managed to hold more than 5% gains on its weekly chart. According to CoinMarketCap, Bitcoin’s dominance also surged 0.47% in the past 24 hours to 47.47%.
Experts Anticipate a Sustained Rally
In the wake of the recent price rally, Alkesh Shah and Andrew Moss forecasted there may be still enough room for more gains as the recent flow of funds between crypto exchanges and personal digital wallets surged. The duo stated ln the week leading up to April 4, a net total of $368 million in Bitcoin (BTC) was transferred to personal wallets, marking the year’s second-largest net Bitcoin outflow from crypto exchanges.
They believe that this trend suggests a decrease in sell pressure as investors typically move tokens from exchange wallets to personal wallets when they plan to hold or “HODL” them. The strategy of holding for a long period helps the investors to escape from high volatile nature of the crypto market and not move with the market sentiment.
Both Shah and Moss explained the fervent United States crack down on crypto-based companies may have triggered the efflux from exchanges. The strategists wrote,
“Investors transfer tokens from exchange wallets to their wallets when they intend to hold them, indicating a potential decrease in sell pressure.”
Will Bitcoin Continue Its Bull Run?
It seems Bitcoin’s recent surge towards $30K has put forward hopes of a parabolic run in the next few weeks. The latest rally appears to be partly tied to the Federal Reserve’s monetary policy as investors are now betting that the Fed will soon pause its rate increases. It also coincides with the turmoil in the banking sector last month with several industry advocates pointing to the recent rally as a sign that investors are converting some of their cash into digital currencies.
#Bitcoin remains on course for $34,000 as the bullish megaphone pattern continues to dictate $BTC's trajectory! 🐂 https://t.co/QzPPhpmtCh pic.twitter.com/00fK5etnpN
— Ali (@ali_charts) April 11, 2023
Industry experts anticipate Bitcoin (BTC) is poised for another leg upward as it is about to cross a major resistance-support level that could initiate a short squeeze. According to a popular Twitter crypto analyst Ali, Bitcoin’s (BTC) price has respected a bullish megaphone chart pattern on the higher time frame. As a result, the bellwether token is headed towards $34k in the coming days with minimal resistance.