A quick short squeeze catapulted Bitcoin's price above $54,000, and a handful of altcoins rallied to new all-time highs.
Cryptocurrency investors breathed a sigh of relief on April 26 as the sharp reversal in the price of Bitcoin (BTC) was accompanied by a marketwide recovery that has a majority of altcoins seeing green. It's likely that the breakout was aided by bullish assessments from JPMorgan Chase analysts and PayPal's announcement that demand for purchasing cryptocurrencies had surpassed expectations.
Data from Cointelegraph Markets and TradingView shows that after bouncing off a low near $47,000, Bitcoin roared back above the $50,000 support level and climbed above $53,500, while Ether (ETH) reclaimed $2,500.
BTC/USDT 4-hour chart. Source: TradingView
Last week’s market pullback did little to slow the mainstream adoption of cryptocurrencies, as stories like NFL draft prospect Trevor Lawrence signing an endorsement deal with crypto portfolio-tracking platform Blockfolio and hotels in Nigeria announcing plans to accept Bitcoin as payment emerge on a daily basis.
On-chain analysis tracks Bitcoin's growing bullish momentum
Data from Glassnode shows that on-chain transfer volume and the average transaction fees for the Bitcoin network hit new all-time highs in the previous week as the network continues to recover from mempool congestion due to the drop in hash rate that occurred as the result of a power outage in China.
Mean transaction fees on the Bitcoin network. Source: Glassnode
Analysis of the spent output age bands, which detail how long BTC has been sitting in a wallet, indicates that newer tokenholders were shaken out by the recent dip, while wallets that have been holding longer than one month saw a decline in transaction activity.
The data also shows that wallets that have been holding for longer than six months have not seen a notable increase in spending since the market pullback in February.
Further bullishness can be found when looking at miner accumulation, which is at its highest level since mid-2018, according to Glassnode.
Miner net position change. Source: Glassnode
Overall, analysis shows that it was the newer hands in the market that were shaken out by last week's correction, while the more experienced crypto traders were happy to accumulate BTC from those worried about a further price drop.
Altcoins rise as Bitcoin finds its footing
Bitcoin’s struggles over the past week have allowed altcoins to step forward and gain market share, with a number of coins breaking out to new all-time highs and trading volume on decentralized exchanges on the uptrend.
The Ethereum-based decentralized finance lending platform Compound's COMP token spiked 17% overnight to reach a new record high at $671 while the layer-two solution Polygon's MATIC token surged 68% to a new all-time high at $0.576.
Daily cryptocurrency market performance. Source: Coin360
The Solana-based decentralized exchange Serum saw its native SRM token price break out to a new high at $11.47 thanks to increased activity on the Solana blockchain network.
Solana price gained over 120% in the past week and reached a new high of $48.46 on April 25 as its ecosystem continues to expand and new projects launch on this layer-one Ethereum competitor.
The overall cryptocurrency market capitalization now stands at $2.004 trillion, and Bitcoin’s dominance rate is 50.3%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.