Bitcoin price surges above $47.5K: what is fuelling the comeback?
Bitcoin, the world’s largest cryptocurrency, among other major altcoins started the week on a surge after a bloodbath that saw the majority of cryptocurrencies nosedive below expected levels over the past two months of 2022.
Yesterday, BTC reached a new three-month high after hitting a high of $47,765 before retracing back to $47,506.06 at the time of writing.
This article focuses on the forces behind the current Bitcoin price comeback.
Factors behind the current BTC rally
There are two main factors that are being attributed to the current Bitcoin (BTC) price surge that has seen Bitcoin maintain above $47K as it heads back above $50.
These factors include increased short-sellers and a surge in BTC whale addresses.
Short Sellers
Glassnode, a well-known crypto analyst, investigated to see what the surge is all about. In a video, the analyst said that those betting on a protracted drop in Bitcoin price (Short Sellers) are the ones responsible for the current market trend.
Besides, when the market experiences dramatic upswings, there are short liquidations too.
The analyst said:
‘’They can watch it falling, down, down. They eventually get enough confidence to say, “You know what? I’m tired of being squeezed out of my long position. I’m going to go short.” They did it at the exact bottom, which is impressive, but then they are squeezed out oppositely, and the trend begins to shift.’’
The current bitcoin bullish trend started on February 24, 2022, after ‘short’ liquidations started gaining momentum. At the time BTC was trading at around $37000.
According to the analyst, although ‘short sellers’ are responsible for the surge, they need to have an organic demand.
A surge in BTC whale addresses
Another factor for the current surge is the growing number of BTC whale addresses.
Glassnode said that there has been a huge increase in the overall accumulation balance which shows that more people are stacking the coin. From the address growth, we can also see that there is a genuine organic demand.
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