The data shows that Bitcoin (BTC) bulls’ attempt to break above $42,000 in the past day was clearly rejected by the bears and the price retraced to $40,825 before surging above $41,000. At the time of writing, BTC is changing hands at $42,067. So, what are the levels that analysts are observing? Here are the details…
What do the data on whales show?
According to on-chain data firm Whalemap, there is substantial volume near the $40,000 price level. According to Whalemap, “A substantially significant portion of whale assets are currently in the range of $38,000 to $42,000. This is the vital area for Bitcoin. Above: Taurus. If it goes under: The decline,” he said. Similar to the observation made by Whalemap, Glassnode analysts noted that “large coin supply has been re-accumulating between $38,000 and $45,000, the primary price range of the current market consolidation.”
STH’s buying between $50,000 and $60,000 when data is split between long-term holders (LTH) and short-term holders (STH), determined by a retention threshold of 155 days. Only a few of them still hold coins. This shows that most large buyers are mostly capitulated, according to Glassnode.
Bitcoin investors caught in a bear trend? According to
Glassnode, a large percentage of current STH demand “clusters between $38,000 and $50,000, confirming that investors continue to see value in this price range.” The fact that 15.2 percent of Bitcoin held by LTHs is currently in losses, suggesting that a large number of LTHs were caught in a gradual bear trend that preceded capitulation by the latest market correction, according to Glassnode.
Glassnode suggested that some of the current weaknesses in the market may be due to fears of further capitulations, causing traders to sit on the sidelines until such an event occurs. Glassnode uses the following phrases:
But under the surface, most of the market seems to have capitulated in a statistically significant way, and a flexible demand stream in the $35,000 to $42,000 range has quietly completely absorbed this sell side.
Bitcoin should hold $41,300
Twitter user “Abnessa” said that Bitcoin price must rise above $41,300 to complete a potential reverse head and shoulders pattern on the 4-hour chart. According to Abnessa, Bitcoin is currently “trying to retrace this level after a failed support/resistance (S/R) turn.” To create the bullish case, Bitcoin needs to “successfully flip the S/R of the current descending trendline” and “reclaim support up to the green neckline”, thus completing the inverse head and shoulders pattern.
As for bearish, a failed retest of $41,300 will result in a “break below the bear flag” and “as well as rising wedge resistance with S/R exchange rising as support.” will mean.” If that happens, Abnessa sees a “minimum bearish target of $35,000.” As we have also reported as Kriptokoin.com, the total value of the crypto money market is a little over $2 trillion at present.
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