The return of bitcoin to over $ 40,000 has been due to the purchase of whales
Although the price of Bitcoin fell below $ 39,000 in recent days, the whales of this digital currency were able to return it to above $ 40,000. Analysts say the support area is between $ 37,000 and $ 40,000, an area where investors are always buying more units.
To Report Crypto Potito, when the price of Bitcoin stabilized above $ 40,000 in a few days and then reached a monthly low of $ 39,000, many market participants thought that the price of the world’s largest digital currency would fall further. However, when sellers tried to lower the price of bitcoin and bring it into the $ 37,000 to $ 40,000 channel, some traders concluded that this range was a great opportunity to accumulate this digital currency.
Minkyu Woo, a technical analyst at the CryptoQuant website, claims that the volume of instant transactions in exchanges has increased significantly recently as bitcoin sales pressure has increased. According to him, the whales may have bought large quantities of bitcoins during the crash; Because this output flow has been done with only 10 large withdrawals from exchange offices.
Wu thinks the $ 37,000 to $ 40,000 price channel has been an important storage area for bitcoin since March. Therefore, he has asked investors to hold their bitcoins or if they can buy in this range. Increasing the output current is usually considered a positive sign; This is because the stock of exchange offices has decreased and the downward trend may be replaced by a new upward trend.
It seems that something like this has just happened; Because Bitcoin has made up for all its losses and even intends to challenge the $ 41,000 resistance.
Wu explained that bitcoin will be traded below its 200-day moving average (MA 200) from the fourth quarter of 2020 (October to December 1999). As long as these conditions are maintained, institutional investors will continue to accumulate the world’s largest digital currency, he said. As can be seen in the chart below, with the decline in the price of Bitcoin (black line), the interest of institutional investors in buying (yellow line) has increased.
The downturn in the bitcoin market has swept the entire digital currency market in recent days; Atrium fell below the $ 3,000 mark, and most Altcoins lost some of their value.
However, the situation in the digital currency market today seems to be different from previous days; Because almost all digital currencies have started to improve. Atrium, for example, has been able to recoup the $ 3,000 range, and Bainance Quinn is trading above the $ 400 range.