Bitcoin Is Due to an Uptick in Price Action, Indicators Show: Analyst

• Bitcoin reserves on exchanges are dropping while prices gradually move higher.
• The shorts also appear to have capitulated, said analyst @martypartymusic.
• There is a possibility of Bitcoin “going to the moon” from here, said the analyst.

The price of Bitcoin appears to be nearing a bullish breakout, according to a prominent crypto analyst on social media platform X (formerly known as Twitter). Notably, the leading digital asset has been unable to reclaim its $70,000 price level since making a new all-time high of $73,000 earlier in March. 

In the X post, analyst @martypartymusic pointed out that the Bitcoin “shorts appear to have capitulated” and there is a possibility of prices “going to the moon.” 

The data shared by the analyst suggests that traders who had been betting on the price of Bitcoin to decrease (shorting it) have closed their positions en masse. There is a possibility of a short-term increase in the price of Bitcoin as these shorts cover their positions by buying back Bitcoin, adding to the buying pressure in the market.

Another chart posted by the analyst showed the correlation between Bitcoin reserves on exchanges and the Bitcoin price. The data from the 2020 halving event depicts that the amount of Bitcoin on exchanges sees a gradual dip as the leading digital asset’s price trajectory gains upward momentum around the halving event. 

A similar trend is currently being witnessed ahead of the 2024 Bitcoin halving event, as the Bitcoin reserves on exchanges have witnessed a gradual dip and the prices are gradually reaching new highs. 

As reported earlier by Coin Edition, on March 12, analyst CryptosRUs hinted at Bitcoin’s bullish rally to $140,000 in just 18 days. While the scenario has yet to play out, the analyst also stated last week that the proposed interest rate cuts by the U.S. Federal Reserve will result in an imminent Bitcoin supply squeeze.