As April approaches, expectations are rising for Bitcoin to move towards a strong upward wave. Technical and fundamental indicators support this scenario, as cash flow into the market is notably increasing, with rising network activity and consistency in recent price bottoms, indicating that the largest digital asset is gearing up for a new upward wave.
Cash flow and liquidity enhancement
Data indicates a significant influx of capital into the cryptocurrency market, which is considered a positive indicator of increasing demand. Trading platforms have seen intensive buying in recent weeks, which could lead to breaking important resistance levels.
Consistency of bottoms and readiness for a rise
Technical observers note that recent Bitcoin bottoms show consistency in rising, indicating strength in the upward trend. This pattern is usually a precursor to a strong upward movement, especially with signs of increasing buying momentum.
Market cycles and history repeat themselves
Historically, April has been among the positive months for Bitcoin, with notable increases observed in previous years during this month. Looking at past patterns, we can notice significant similarities between the current phase and the upward accumulation phases in 2017 and 2020, reinforcing the hypothesis that the market may be on the brink of a similar upward wave.
Other factors supporting the rise
Increasing institutional adoption: Major institutions are increasingly purchasing Bitcoin as a hedge against inflation.
Global monetary policies: Fluctuations in central bank policies may push investors towards alternative assets like Bitcoin.
Reduced supply: As the halving date approaches, expectations are growing that the decrease in supply will lead to price increases with rising demand.
However, as always, investors must exercise caution and manage risks well, as markets remain susceptible to sudden fluctuations that could affect price trajectories.