Bitcoin (BTC) Profiteering? Active Wallets Shot Before Apr-2 Price Surge

Dalmas Ngetich

1 year ago

2 mins read

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Bitcoin prices register double digit gains and steady above $5,000
An analytical firm notes a spike in wallet active just before the spike.

Heightened cryptocurrency wallet activity could have triggered recent price rally. Analytical firm says that only 10 percent of Bitcoin wallets were inactive in the last two weeks leading up to the price surge. In other news, Canada Bitcoin (BTC) forfeiture is the largest in history coming at the time when Bitcoin (BTC) is bottoming up, registering strong gains in the right direction.

Bitcoin Price Analysis

Fundamentals

In the last couple of days, there has been much debate over the real reason to the recent price surge. One of the earlier theories pins the surge to a successful April Fool’s day prank. However, that argument no longer holds. Instead, most analysts suggest that the surge was purely technical.

Other explanations by Bloomberg notes that just before the surge, the number of active Bitcoin wallets shot. Drawing their observations from an analytical firm, Flipside Crypto, the number of active crypto wallets from average users rose from March 15 which many believe supported prices as confidence rose in tandem.

Only 10% of #bitcoin wallets have been inactive since March 15th. Movements from smaller investors were a leading indicator for the recent market bull run. More from us in @Bloomberg: https://t.co/NtgrXEViOL #crypto #market #intelligence

— Flipside 📊 (@flipsidecrypto) April 3, 2019

Meanwhile, in Canada, a Toronto judge has ruled that an online drug dealer must forfeit $1.4 Million Bitcoin holdings. This becomes the largest forfeiture ever in the country. Though the convict, Matthew Phan, tried to appeal the decision claiming he had not acquired his 281.41 BTC through drug dealing, his appeal wasn’t successful.

Candlestick Arrangement

Even though momentum is waning, Bitcoin (BTC) bulls are firm and satisfactorily trending above $4,500. To that end, Bitcoin is up 22 percent in the last week at the time of press.

All the same, Bitcoin rise has been beneficial for the market. Therefore, in a bull breakout pattern, prices are poised to register gains in days ahead. However, traders should proceed with caution despite the recent uptick in activity. Notice that Bitcoin bull bars are banding along the upper BB but in doing so, Apr 3 bar did close above the upper BB.

This pattern either means BTC is overvalued, and could drop back to the middle BB or the coin’s buy momentum is too strong. Either way, there is an option of loading up on pullbacks in lower time frames. If buyers fail to maintain prices at these levels and BTC drop below Apr 3 lows, then risk-off traders should exit their longs and wait for better entries at around $4,500–$700 zone in line with yesterday’s BTC/USD trade plan. The correction will allow momentum build up and would sustain the break-out pattern via retests.

Technical Indicators

After two days of stellar performance, Bitcoin (BTC) momentum is waning as volumes drop. On Apr 2, BTC volumes stood at 54k when averages were at 6k. That was almost double those of Feb 18—37k and Feb 24—36k confirming the double-bar bull pattern of Mar4-5. Because this is a bull breakout pattern and a correction imminent, ideal buy zone is as mentioned with buy signal being a spike in smaller time frames.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.