The price of bitcoin restored the level of 40,000 dollars as support, but as a boost to the bull to a new record for all time, the possibility of new sharp sales.
According to analysts at crypto-analytics company Material Indicators, mega-kits are selling steeply when Bitcoin reaches $ 40,000 on January 7. This led to a rapid 10% drop to the $ 36,000 zone over the next few hours.
The discount was quickly redeemed, eventually costing more than $ 41,000 over the next 12 hours. However, BTC saw another big drop after setting a new record of $ 42,000, and at the time of writing the top-ranked digital asset was trading at $ 40,800. According to the material indicators:
“So it looks like the mega-whales started selling after this dump at about 2 am UTC and kept selling on spikes. I guess they expect more flaws. They really did not take part in the rally up to 42,000, which will further support this point. “
In the latest retreat from $ 42,000 to $ 40,000, analysts at Material Indicators explained that smaller whales holding $ 1
“But now they have started buying again. Supposedly to break the resistance of 42k. Only this time it seems that normal whales ($ 100k – $ 1M class) have started to win. “
Given that bitcoin has sometimes traded higher on Coinbase in the past week, it is clear that there is a high demand from US buyers
This suggests that there is a battle between the normal whales that win and the new buyers in the US market. The sharp rejection of any new record for all time also signals that whales can aggressively win as soon as Bitcoin reaches a new record
It is therefore important that the demand for bitcoin from the United States is maintained in the near future. Otherwise, the high level of pressure on whale sales could cause BTC to see a correction in the foreseeable future.
Where could bitcoin go from here?
Currently, bitcoin has an extremely strong technical momentum, which continues to raise the price. For this reason, traders are reluctant to shorten it, but some have begun to make profits.
In the short term, one of the worries about bitcoins is the potential recovery of the US dollar. A trader under a pseudonym known as “Cantering Clark” determined the recovery of the US dollar and the decline of precious metals. He said:
“So the question is, does $ DXY find the floor surprisingly, and do the metals react by being bored, do they hold $ BTC well?”
The US Dollar Index (DXY) moves at the level of support for the monthly chart. Alternative valuable stores, such as bitcoin and gold, are priced against the dollar. Therefore, if the dollar starts to move up, the risk of BTC correction may increase.