Bitcoin

Start at 3, 2 … here’s why bitcoin’s $ 40,000 breakout is different than last time

ANDBitcoin (BTC) price topped $ 40,000 for the first time in 23 days on Feb.6. But this time around, with a less overheated derivatives market, market sentiment is much calmer.

The combination of a less crowded Bitcoin futures market, whale selling pressure at its peak, and a rapid rally could help BTC stabilize above $ 40,000 this time around.

Bitcoin is quickly recovering after the whales stop selling

January 29th A pseudonymous Bitcoin researcher and analyst named “Material Scientist” said the flow of orders for the “mega whales” had reached an all-time high.

Start at 3, 2 … here’s why bitcoin’s $ 40,000 breakout is different than last time
Start at 3, 2 … here’s why bitcoin’s $ 40,000 breakout is different than last time

This means that selling pressures from whales handling orders of $ 1 million to $ 10 million hit a record high. The analyst said at this moment:

“The whales bought almost everything they sold for at least $ 40,000, and the megawales are about to make a new ATH [pico histórico] in your order flow. The downward trend is over in my opinion. New ATH soon, don’t miss it! “

Bitcoin exchanges data with whale orders (brown line). Source: material indicators

If the price of Bitcoin sets $ 40,000 as the new support area, it would create an extremely positive short-term price trend for BTC.

This would mean that BTC can now move to its all-time high without the selling pressure from top whales and wealthy investors.

In the short term, to maintain its bullish structure, Bitcoin would need to protect two major levels of support: $ 40,000 and $ 37,834.

Meanwhile, according to whale map analysts, As a data analytics platform that tracks whale data, there is a confluence of whale props at $ 37,834 and $ 36,290.

If Bitcoin surpasses the $ 40,000 level, these two areas of support will be vital to defense. Below these two levels, a short-term downtrend is likely. Analysts they write::

“The confluence of the whales is 37,834 USD -> 36,290 USD. A new group was also formed in this area yesterday. This should provide BTC with a good base to withdraw from in case we ever get there. If not, $ 39,843 should help too. “

Support levels for whale clusters. Source: Whalemap

What’s next?

For the foreseeable future, some traders expect Bitcoin to rise above $ 60,000 due to the ongoing rally.

Scott Melker, a cryptocurrency trader, said there will be pullbacks, but Bitcoin is likely to hit $ 63,000 after the breakout. The said::

“There will be setbacks, maybe even to retest the tip of the flag for support. But technically, this is a confirmed breakout that should ultimately bring BTC to $ 63,000. Disclaimer: Employers rarely achieve their goals, but the rules are the rules. “

Bitcoin technically broke the bullish flag when it broke above $ 38,000 on February 4th. Given that Bitcoin looks stronger than the last time it broke $ 40,000 a month ago, there’s enough momentum to break over $ 50,000 this time.

One possible short-term catalyst could be that Guggenheim may confirm its investment in Bitcoin after receiving the rights to invest in Grayscale Bitcoin Trust in February.

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