Bitcoin has recently experienced a remarkable surge, reaching the $31,250 level and marking a nearly 15% increase in its value. This dramatic uptrend has caught the attention of investors and analysts alike, leading to speculation about the continuation of this bullish trend. With a significant influx of trading volume reaching $10 billion over the weekend, the question arises: Are whales buying into Bitcoin and fueling its upward momentum?
Esteemed on-chain analyst Ki Young Ju, CEO and founder of CryptoQuant, shares a valuable “pro tip” for tracking whale activity in the cryptocurrency market. According to him, monitoring Bitcoin whales on low-liquidity exchanges proves to be more effective than popular platforms like Binance. By focusing on exchanges with limited liquidity depth, investors can identify significant whale-driven transactions and gain valuable insights into market movements.
The current price of Bitcoin sits at $30,714, with a trading volume of over $10 billion ($12.9 billion, to be precise) over the past 24 hours. Bitcoin holds the top position in the CoinMarketCap ranking, with a market capitalization of $596 billion. At present, there are 19,411,281 BTC coins in circulation out of a maximum supply of 21,000,000 BTC coins.
From a technical standpoint, Bitcoin encounters significant resistance near the $30,700 level, further reinforced by the presence of a double-top pattern. Despite briefly surpassing this level and reaching around $31,500, the candlestick formation with a long wick and body illustrates indecision among investors who could not break through the resistance at $30,700. This resistance level continues to pose a major obstacle to Bitcoin’s upward movement.
Key technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest overbought conditions. The RSI hovers around 70, while the MACD histogram remains notably above the zero line. This implies that investors should consider taking profits before anticipating further upward momentum in Bitcoin’s price.
In the event of a breach below the $30,700 level, Bitcoin may experience a corrective pullback. The psychological support level at $30,000 becomes crucial, and a breakdown below it could drive the cryptocurrency toward the $28,250 mark. Conversely, if a breakout occurs above the $31,250 level, Bitcoin could reach higher price levels such as $32,000 or even $34,150.
In conclusion, monitoring the $31,000 level is highly advised. A close below this level could trigger a corrective pullback, while a breakout above it has the potential to sustain the ongoing bullish trend. It is vital for every investor to stay updated on the latest trends and cryptocurrencies, as the dynamic landscape of digital assets continues to evolve. Remember, always conduct thorough research before making any investment decisions, as cryptocurrencies pose significant risks and volatility.
Source: Cryptonews
