Analysts: The return of bitcoin to over $ 40,000 is due to the purchase of whales

Although the price of bitcoin has fallen below $ 39,000 in recent days, the whales of this digital currency have managed to bring it back to over $ 40,000. Analysts say the support area is between $ 37,000 and $ 40,000, an area where investors are always buying more shares.

According to Crypto Potito, when the price of bitcoin stabilized above the $ 40,000 mark in a few days and then reached a monthly low of $ 39,000, many market participants believed that the price of the world’s largest digital currency would fall further. However, when sellers tried to reduce the price of bitcoin and put it in the channel from $ 37,000 to $ 40,000, some traders came to the conclusion that this range is a great opportunity to accumulate this digital currency.

Minkyu Woo, a technical analyst for the CryptoQuant website, says the volume of instant exchange transactions has increased significantly in recent times as the pressure on bitcoin sales has increased. According to him, the whales may have bought large quantities of bitcoins during the crash; Because this output stream is made with only 10 large withdrawals from exchange offices.

Wu believes the $ 37,000 to $ 40,000 price channel has been an important bitcoin storage area since March. He therefore asked investors to keep their bitcoins or whether they can buy in this range. An increase in output current is usually considered a positive sign; This is because the shares of the exchange offices have decreased and the downward trend can be replaced by a new upward trend.

It seems that something like this has just happened; Because bitcoin compensates for all its losses and even intends to provoke resistance of 41,000 dollars.

Wu explained that bitcoin will be trading 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 the chart below shows, with the decline in the price of bitcoin (black line), the interest of institutional investors in buying (yellow line) has increased.

Analysts: The return of bitcoin to over $ 40,000 is due to the purchase of whales
Comparing the price of bitcoin and the interest of institutional investors in the purchase.

Adverse sentiment in the bitcoin market has gripped the entire digital currency market in recent days; Atrium fell below $ 3,000 and most altcoins lost some of their value.

However, the situation in the digital currency market today seems different from previous days; Because almost all digital currencies have started to improve. Atrium, for example, managed to recover the $ 3,000 range, and Bainance Quinn traded above the $ 400 range.

Analysts’ publication: Bitcoin returns over $ 40,000 due to whale purchases first appeared in digital currency.

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