Bitcoin is back in the limelight, surging past the $26K threshold and holding steady. After days of consolidating around this price point, BTC has finally shown a solid upward movement. This serves as an alarm bell for traders, signaling a potentially turbulent weekend ahead. However, investors and traders are left questioning whether this is a genuine change in market sentiment or just a trap set to lure traders.
Bitcoin Whales Change Sentiment
The latest uptick in Bitcoin’s price came following a strong ‘buy the dip’ mentality among traders. While many anticipated a more significant drop below the $25K level, aggressive purchasing around the $25.5K mark created a surge in buying pressure, effectively staving off a downward slide.
The recent price increase was also connected with Bitcoin whale and shark addresses resuming their accumulation. Current data shows that there are 156,660 wallets holding between 10 and 10,000 BTC, and these have collectively added $308.6 million worth of Bitcoin to their holdings since August 17.
Moreover, information sourced from CryptoQuant indicates a significant uptick in the exchange whale ratio metric, which has leaped from 0.37 to 0.48. This suggests that whales are increasingly utilizing exchanges in large volumes.
The active accumulation by these key whale and shark addresses serves as a robust vote of confidence in the Bitcoin price. Given their capacity to drive market directions, their buying activity signals a bullish outlook.
Several analysts are bullish on Bitcoin’s upcoming price, and Pantera Capital’s forecast is promising. It anticipates the next Bitcoin halving to take place on April 20, 2024. Drawing from historical patterns, they expect that Bitcoin might climb to $35,000 prior to the halving and rocket to a staggering $148,000 in its wake.
What’s Next For BTC Price?
From a technical view, Bitcoin’s recent pump seems to be a trap as the price witnessed a significant selloff from the high of $26,900. This suggests that buyers sold their positions even on minor upward rallies. However, buyers are strongly defending a decline below $25.5K. As of writing, Bitcoin trades at $26,068, declining over 0.04% in the last 24 hours.
Nonetheless, the bulls will continue to face challenges until they successfully breach the immediate resistance at $27,400, followed by the 100-day Exponential Moving Average set at $27,780. Surpassing these resistance levels would suggest that the BTC price could maintain its position within the $28K consolidation for a longer period.
While the declining 20-day EMA may give bears an advantage, the oversold conditions on the Relative Strength Index (RSI) hint at a possibility of a decline to $25.5K
For bears to strengthen their grip, they’ll need to push and keep the price below the $24,800 mark. Achieving this level could bring an intense bearish momentum toward $23,700.
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