Bitcoin has experienced a significant surge, reaching the $31,250 level and marking a nearly 15% increase in its value.
This dramatic uptrend has caught the attention of investors and analysts alike, leading to speculation about continuing this bullish trend.
With a massive influx of trading volume, reaching $10 billion over the weekend, the question arises: Are whales buying into Bitcoin and fueling its upward momentum?
In this Bitcoin price prediction, we will explore the current state of Bitcoin’s price and analyze potential future price action.
Are Whales Buying Bitcoin?
An esteemed on-chain analyst, Ki Young Ju, CEO and founder of CryptoQuant, shares a valuable “pro tip” for tracking whale activity in the cryptocurrency market.
According to Ki Young Ju, monitoring BTC whales on low-liquidity exchanges is more effective than popular platforms like Binance.
By focusing on exchanges with limited liquidity depth, investors can identify significant whale-driven transactions and gain valuable insights into market movements.
Ki Young Ju provides examples of trades from futures trading platforms such as Huobi, BitMEX, ByBit, Deribit, and OKX to support his recommendation.
During the accumulation period in January 2023, when Bitcoin (BTC) traded sideways between $16,500 and $18,000, whales made notable long positions that laid the groundwork for a subsequent rally.
Specific trades made by whales on Huobi, initiating long positions at $16,819, demonstrate the potential for significant returns even without leveraging.
Analyzing statistics from high-volume exchanges like Binance proved less valuable due to challenges in identifying individual trading behavior amidst substantial trading volume.
The current price of Bitcoin is $30,714, with a trading volume of over $10 billion ($12.9 billion, to be precise) over the past 24 hours.
In the CoinMarketCap ranking, Bitcoin holds the top position with a market capitalization of $596 billion.
Currently, 19,411,281 BTC coins are in circulation, out of a maximum supply of 21,000,000 BTC coins.
Bitcoin Price Prediction
From a technical standpoint, Bitcoin is encountering significant resistance near the $30,700 level, which is further reinforced by the presence of a double-top pattern.
Despite briefly surpassing this level and reaching a high of around $31,500, the candlestick formation with a long wick and body indicates indecision among investors, as they could not break through the resistance at $30,700.
This level continues to pose a major obstacle to Bitcoin’s upward movement.
When analyzing key technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), both indicators suggest overbought conditions.
The RSI hovers around 70, while the MACD histogram remains significantly above the zero line.
This implies that investors should consider taking profits before anticipating further upward momentum in Bitcoin’s price.
In the event of a breach below the $30,700 level, Bitcoin is likely to experience a corrective pullback.
The psychological support level at $30,000 becomes crucial, and a breakdown below it could potentially drive Bitcoin toward the $28,250 mark.
On the other hand, if a breakout occurs above the $31,250 level, Bitcoin could be exposed to higher price levels, such as $32,000 or even $34,150.
In conclusion, it is recommended to monitor the $31,000 level closely.
A close below this level could trigger a corrective pullback, while a breakout above it has the potential to sustain the ongoing bullish trend.
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