Strategists Expect Bitcoin Price Rally To Continue As Shrimps Show Aggressive BTC Accumulation

Bitcoin, the world's first-ever digital asset and the largest crypto asset by market capitalization, is expected to see a continued price rally as it crossed past its key psychological price level of $30,000, analysts suggest.

The world's largest crypto asset's stellar rally which started early this year will most likely continue, according to Bank of America strategists Alkesh Shah and Andrew Moss, who based their forecast on the flow of funds between cryptocurrency exchange (CEX) platforms and personal digital wallets.

The strategists listed a net of $368 million of Bitcoin moved to personal wallets in the week leading to April 4, a timeline that also showed the second-largest net Bitcoin outflow from CEXs, according to a note seen by Bloomberg.

For Shah and Moss, this trend indicates a reduction in sell pressure since investors usually move tokens from exchange wallets to personal wallets when they plan to hold or HODL them.

"Investors transfer tokens from exchange wallets to their personal wallets when they intend to hold them (or HODL), indicating a potential decrease in sell pressure," the Bank of America strategists said.

Bitcoin has showcased a strong price appreciation over the past months, recording a staggering 70% surge in the previous quarter and a 43% rise in March alone.

The strategists' data aligned with the information collected and gathered by on-chain analytics firm Glassnode, which observed that BTC Shrimps aggressively accumulated the maiden crypto over the last 30 days and added 35.000 BTC to their portfolios.

Shrimps or Bitcoin shrimps is a term describing wallets that hold less than 1 BTC.

Based on the data, these shrimps' current accumulation rate is the fourth fastest in the market's history, with holdings surpassing 1.3 million BTC, equivalent to more than 6% of the crypto asset's overall supply.

"We can assess the 30d change to the supply held by the Shrimp class (< 1 BTC) to evaluate the intensity of retail participation. Currently, only 116 days have recorded a larger 30d change, suggesting retail participants are aggressively accumulating," Glassnode tweeted on March 31.

Shrimps appeared to have doubled their Bitcoin accumulation in the last 30 days when the crypto asset was changing hands between $22,000 and $28,000. It could be due to the belief that this price range is a good entry point to fatten their holdings.

Despite the positive news about Bitcoin, it saw a 0.21% loss over the past 24 hours and was trading down at $30,026.74 with a 24-hour volume of $17,156,913,251 as of 6:30 a.m. ET on Wednesday, based on the latest data from CoinMarketCap.