The combination of a less crowded bitcoin futures market, selling pressure from peak whales, and a quick recovery could help BTC stabilize above $40,000 this time.
Bitcoinrecovers quickly after whales put an end tosales .
The 29th. In January, a pseudo Bitcoin researcher and analyst known as Materialoved announced that the flood of orders for megakits had reached a record high.
This means that the pressure from whales selling contracts between $1 million and $10 million has never been greater. Then the analyst said:
The Whales have bought back almost everything they sold from $40k. The downward trend is over, in my opinion. New ATH coming soon, don’t miss it!Bitcoin exchange data with whale orders (brown line). Source: Material displays
If the bitcoin price establishes $40,000 as a new support zone, it will create a very positive short-term price trend for BTC.
This would mean that BTC could now reach an all-time high without the massive pressure of the big whales and wealthy investors.
In the short term, bitcoin needs to defend two key support levels, $40,000 and $37,834, to maintain its bullish structure.
Meanwhile, Whalemap, an analytics platform that tracks whale data, saw whale columns converge on $37,834 and $36,290.
If bitcoin collapses from $40,000, protecting these two support points will be crucial. Below these two levels, a short-term downward trend is likely to develop. Analysts wrote:
Whale Fortress Conflict at $37834 –> $36290. A new cluster also formed in the area yesterday. This should give BTC a good base to rise on if we ever get there. If not, $39843 should also help. Whale cluster support levels. Source: Mapping whales
In the near future, some traders expect bitcoin to surpass $60,000 on the momentum of the ongoing recovery.
Scott Melker, a crypto currency trader, said there will be withdrawals, but that bitcoin will likely reach $63,000 after the breakout. He said:
There will be withdrawals, perhaps even to retest the top of the flag as support. But technically, this is a confirmed breakout that should eventually take $BTC to $63K. Disclaimer – Models rarely hit the mark, but the rules are the rules.
Bitcoin technically broke out of a bullish flag on the 4th. February was over $38,000. Given that bitcoin looks stronger than the last time it broke the $40,000 barrier a month ago, there is enough momentum to take it above $50,000 this time around.
A potential catalyst in the near future could be Guggenheim, which could confirm its investment in bitcoin after it received the rights to invest in Grayscale Bitcoin Trust in February.
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