The price of Bitcoin (BTC) is showing signs of a newfound rally as it breaks the $40,000 resistance area. There is a combination of optimistic on-chain data points and a favorable market structure that is leading analysts and traders to anticipate an impending Bitcoin breakout to a new all-time high.
In the short term, the $38,000 and $40,000 levels remain the biggest hurdles for Bitcoin. The longer BTC took to break out of $40,000, the higher the probability of a potential correction was imminent. Thus, it’s critical for Bitcoin to surpass the $40,000 level and stay above it in the foreseeable future. Bitcoin has already spent nearly three weeks under $38,000, causing its short-term price cycle to stagnate and lose momentum. On Feb. 6, Bitcoin finally broke out of the $38,000 level, establishing it as a support level.
One positive on-chain data point that raises the chances of a Bitcoin breakout is the increase of whale addresses. Analysts at Santiment said that Bitcoin whales have continued to accumulate despite the increase in the price of the asset: “The whales of #Bitcoin (1,000+ $BTC addresses) haven’t stopped accumulating, while the mid-tier traders (10-1,000Title: Bitcoin price breaks $40K: Here’s where BTC may go next
Sourced From: cointelegraph.com/news/bitcoin-price-breaks-40k-here-s-where-btc-may-go-next
Published Date: Sat, 06 Feb 2021 11:22:17 +0000