The purchasing pressure behind Bitcoin appears to be building quickly, indicating that it is prepared for a bullish surge.
Long Bitcoin positions are increasing, and whales are adding tokens to their holdings, indicating that investors are re-entering the market. Although the current increase in purchasing pressure appears to be promising, BTC still faces a significant challenge.
Bitcoin Purchase Orders Are Being Fulfilled
The whales have returned their focus to Bitcoin.
The market has been shaken by the flash crash of September 7. Some of the most well-known technical experts in the crypto sector now believe that Bitcoin’s rejection of $53,000 will result in a disaster.
For example, the expert known as dave the wave predicts that the flagship cryptocurrency would fall to around $30,000. According to them, the recent negative pressure might turn into a more substantial slump since the moving average convergence divergence, or MACD, on BTC’s monthly chart had a bearish cross.
Despite the bearish worst-case scenario, numerous fundamental variables indicate that some investors have taken advantage of the price decrease to purchase Bitcoin at a reduced price.
For the first time since July 22, the amount of long Bitcoin holdings on Hong Kong-based cryptocurrency exchange Bitfinex has reached a new high. Over 3,200 long positions have been opened in the previous week alone, indicating that some traders have taken advantage of the price drop.
Santiment, a behavior analytics tool, also reveals that whales are gathering.
Within the same time frame, addresses owning 10,000 to 100,000 BTC acquired almost 60,000 BTC worth $2.82 billion. This large amount of tokens were also withdrawn from wallets on well-known cryptocurrency exchanges, easing the selling pressure on Bitcoin.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model suggests a big supply hurdle ahead of Bitcoin, even as purchase orders pile up. Previously, approximately 900,000 BTC were acquired between $46,900 and $46,650 by about two million addresses.
The return of the uptrend would be signaled by a daily candlestick closure above this resistance wall.
To avoid more losses, Bitcoin, on the other hand, must remain above the $44,000 to $46,800 support zone. By slicing through this high-interest region, investors may be enticed to sell their BTC to avoid seeing their investments go “out of the money.” In this case, a drop to $38,000 is possible.