Bitcoin sat above a critical support zone over the weekend. At the time of writing, BTC is trading at $ 56.662 with a sideways movement on the daily chart. On the weekly chart, the first cryptocurrency by market capitalization after a rally of $ 10,000 from the higher zone in the $ 40,000 area is 12.8%.
BTC is moving sideways on the daily chart. Source: BTCUSD Tradingview
The bullish sentiment appears to be making a comeback in the crypto market as many investors expect new highs in the short term. In the meantime, BTC could consolidate at its current level of USD 54,000 as the critical support zone as there is a large concentration of investors who have bought around this level, as trader Byzantine General has shown.
Source: Whalemap via Byzantine General
During BTC’s surge towards the upper $ 50,000 range, CryptoQuant CEO Ki-Young Ju saw an increase in whale activity. According to Young Ju, “massive bitcoin” have transferred across all exchange platforms. Possible due to over-the-counter (OTC) trades made by institutions that are still accumulating BTC. CryptoQuant CEO added:
A significant Coinbase premium could indicate that US institutional investors are buying. A significant amount of $ BTC flowed into derivatives exchanges from other exchanges, meaning whales may potentially open a long position using their BTC as collateral. This happened in the bathroom.
Further data provided by analyst William Clemente shows an increase in the total transfer volume of stablecoin tether (USDC) on exchanges. The last time the metric rose, Tesla announced the purchase of Bitcoin. The analyst believes that the demand for BTC in the market is increasing and could contribute to a higher appreciation.
At the same time, funding rates have remained relatively low during the BTC rally. Therefore, and despite a surge in whale activity, the analyst believes the rally was organically driven by investors in the spot market. Clemente added, “The price is likely to go much higher in the coming weeks.”
BTC funding rate low as of May 1st. Source: Glassnode via William Clemente
$ 55,000 as new ground for Bitcoin price
Trader Josh Rager is more conservative and expects BTC to test the weekly level at $ 59.979. If it stays that way, BTC could see new highs, but until then we are “only moving in price” into that target, as the trader said.
Source: Josh Rager
If Bitcoin repeats a downtrend, $ 50,000 could be the new $ 10,000 for future corrections. Data provided by Glassnode through analyst Clemente shows that 14.46% of the BTC supply was bought in the middle of the $ 50,000 range.
This represents Bitcoin’s largest capital base. The cryptocurrency appeared to be trading at $ 6,000 and $ 11,000, the analyst said, adding:
Each bull market forms a capital base that is 2-3X above the previous ATH and marks “the point of no return”. Would consider this the next bear market day.
Source: Glassnode via William Clemente
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