After moderate downward pressure, bitcoin (BTC) price rose above $31,000 on Thursday. Data across the chain indicates that the recent positive comments made by Blackrock CEO Larry Fink sparked a bull move. Could BTC Rally Toward $35,000 In The Coming Weeks?
During an interview with Fox News Wednesday night, Larry Fink called bitcoin “digital gold,” which is resistant to inflation and economic volatility in any country. By Thursday morning, the price of BTC was up 2%, reaching $31,500.
Analysis of the on-chain data reveals another crucial factor that could drive Bitcoin to its $35,000 price target.
The market sentiment surrounding Bitcoin has improved significantly this week. According to blockchain analytics platform Santiment, the weighted Bitcoin sentiment settled around -1.12 at the end of June. However, by July 6, it had seen an improvement of 24%, and trended up to -0.9.
weighted sentiments It measures the public perception of the market surrounding a particular crypto asset. Essentially, it weighs the number of positive comments against the negatives.
The chart above shows that at the end of June, BTC market sentiment was mostly pessimistic, with two negative comments drowning out every positive opinion.
However, given the 24% improvement shown in the chart above, Larry Fink’s recent positive comments seem to tilt the momentum towards the bulls’ side.
If the bulls build on this momentum, BTC price has plenty of room to grow before hitting the next important resistance.
BTC mining has maintained a long-term bullish stance
Bullish sentiment among bitcoin miners is another important reason for bitcoin price’s positive start to the month of July. According to on-chain data, miners maintained an optimistic stance throughout the second quarter of 2023.
The IntoTheBlock chart below shows how miners’ reserves have increased since the beginning of May. Between April 30th and July 6th, miners increased their reserves by 20,000 bitcoins.
Miner Reserve evaluates the disposition of Bitcoin node validators by tracking real-time changes in the wallet balances of recognized miners and mining pools. When miners add to their reserves, it indicates that they expect future price gains.
The graph above shows that although mining costs were high, bitcoin miners were not depleting their reserves.
As things stand, the miners now own 1.93 million bitcoins, roughly 10% of the total 19.4 million bitcoins in circulation. Thus, the bullish trend between the two metals is weighing on the Bitcoin price.
If they continue to accumulate more of their block rewards, the BTC price is likely to go higher in the coming weeks.
BTC Price Prediction: $35,000 on the Cards?
According to the In/out money around price Data below, Bitcoin is facing minimal resistance on its way to $35,000.
But to be confident of a bullish breakout, the bulls should clear the initial selling wall around 32,350. At this point, the 170,550 addresses that bought 80,000 BTC with a minimum of $32,358 could trigger a minor reversal.
However, if the bullish momentum is strong, BTC could rally towards $35,000 before encountering any significant resistance.
However, there is little chance that the bears will regain control if BTC unexpectedly rebounds below $30,000. But as proven over the past few days, the 1.48 million investors who bought 660,840 bitcoins at an average price of $30,232 are likely to remain flat.
But if this support level, Bitcoin could enter another bearish reversal towards $28,000.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.