Following weeks of volatility, Bitcoin(BTC) price recorded upward momentum during this weekend as it climbed by over 5%. The flagship cryptocurrency broke past the $35,000 support with major assistance from whales who added 60,000 coins to their wallets in the largest daily accumulation of 2021.
Notably, the surge in accumulation coincided with history’s biggest downward adjustment in Bitcoin mining. Last week witnessed Bitcoin’s mining difficulty decline by 28% as a consequence of China’s continued efforts to ban crypto mining in several provinces. The currency’s hash rate also reached a 19-month low of 87.6 TH/s.
Nevertheless, many traders are optimistic about recent events in China and believe the current crackdown will help decentralize the BTC network in the long term. Before the mining ban compelled Bitcoin miners to consider transitioning from China, the country accounted for 75% of the world’s BTC mining capacity.
With the rising probability of Bitcoin mining spreading to other countries, traders may have adopted bullish positions on the digital asset, leading to the accumulation of 60K coins by whales.
The past two days have been significant for Bitcoin price action as the largest cryptocurrency appreciated from $32,699 to $35,727.
According to data from TradingView, the largest cryptocurrency has turned the $35,000 price into its new support while trading above its 21-day moving average. The currency’s latest price action suggests that it might regain its 50-day moving average, which could drive its prices in the $38,000-$40,000 range.
Meanwhile, altcoins have also seen their prices consolidate, with Ether, the native token of Ethereum blockchain, posting a 2.35% gain. As of press time, ETH was trading at $2316.34.