- Cointelegraph highlighted that on the 28th of this month, roughly 57K bitcoins were purchased from the major exchanges.
- In addition to owning roughly 105k BTC, MicroStrategy hinted that the company was planning on increasing its digital asset investments.
- While BTC has a high probability of exhibiting a bullish trend in the coming months, we may experience some retracements in the coming days.
Similar to the majority of altcoins, BTC appears to be stalling slightly below a key resistance area. This may imply that some investors are closing their buy positions at this high.
On the other hand, Dylan LeClair – Co-founder of 21st Paradigm – claimed that on-chain data reveals that in the past week, huge Crypto volumes have been moved from major exchanges using over-the-counter platforms. Cointelegraph highlighted that on the 28th of the last month, roughly 57K bitcoins were purchased from the major exchanges. Further studies reveal that both the small-scale investors and the ‘whales’ seem to be acquiring BTC following the recent recovery from the 29k support zone.
Investment institutions are also making significant cryptocurrency purchases in the meantime. In addition to owning roughly 105k BTC, MicroStrategy hinted that the company was planning on increasing its digital asset investments. Wealthfront stated that it would allow its customers to partition a maximum of 0.1 of their investments into Grayscale Ethereum Trust and Grayscale Bitcoin Trust. Wealthfront manages assets worth roughly $25 billion.
With the increase in the demand for BTC and other cryptos increasing across all levels of investors, we can anticipate a long-term bullish directional bias on these digital assets.
Bitcoin Technical Analysis.
Starting from the last weekend, investors seem to be taking their profits around the $41K resistance area. This is revealed by the reduced buying pressure around this level. In this regard, the $41k level might be viewed as a short-term overbought zone. In case of a short-term reversal, the price is bound to find major support at the $34k level. The chart below shows BTC’s price action on the daily chart at the time of writing.
image from mt 5
On the 1hr chart, the price seems to be stalling with minor drops. A continuation of this retracement exposes the $36,375 zone for immediate support. However, there exists a price action imbalance on the 1hr chart. For the price to fill this imbalance, a retracement to the $32K level would be required. The chart below shows the 1hr chart at the time of writing.
image from mt 5
In conclusion, While BTC has a high probability of exhibiting a bullish trend in the coming months, we may experience some retracements in the coming days.
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