what fuels the comeback?

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Bitcoin, the world’s largest cryptocurrency, among other major altcoins, started the week with a surge after a carnage that saw the majority of cryptocurrencies plunge below projected levels in the past two months of 2022.

Yesterday, BTC hit a new three-month high after hitting a high of $47,765, before returning 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 have been attributed to the current Bitcoin (BTC) price increase that has kept Bitcoin above $47K as it bounced back above $50.

These factors include an increase in short sellers and an increase in BTC whale addresses.

Glassnode, a well-known crypto analyst, conducted research to see what the wave is about. In a video, the analyst said those betting on a long-term decline in Bitcoin price (Short Sellers) are the ones responsible for the current market trend.

Besides, when the market goes through dramatic upturns, there are also short liquidations.

The analyst said:

“They can see it fall, down, down. They eventually gain enough confidence to say, “You know what? I’m tired of being squeezed out of my long position. I’m going short.” They did it right on the bottom, which is impressive, but then they get squeezed out the other way around and the trend starts to shift.”

Bitcoin’s current bullish trend started on February 24, 2022, after “short” liquidations began to gain momentum. At the time, BTC was trading around $37,000.

Although shortsellers are responsible for the increase, they must have organic demand, according to the analyst.

A wave of BTC whale addresses

Another factor for the current increase is the growing number of BTC whale addresses.

Glassnode said there has been a huge increase in the total accumulation balance, showing that more people are stacking the coin. We also see from the address growth that there is a real biological demand.

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