Whales are buying Bitcoin
According to the on-chain data from CryptoQuant, whales are continuing to accumulate Bitcoin.
“Initial support held and now we are back above the midrange. Time to send it to 52k lads.”
Another trader known as Il Capo of Crypto shared a similar sentiment, stating that the rally above $50,000 means the market is showing a bullish structure.
Good to see it above $50k again. pic.twitter.com/blskwYPaIq
What happens next?
In the short term, the key is whether Bitcoin breaks above $56,000 on strong volume and market sentiment.
A break out above it would likely send BTC to around $60,000, based on technical structures and the Fibonacci Sequence.
Considering that Bitcoin tends to drop during the weekend and reverse during the weekdays, the overnight reversal was expected to a large extent.
Analysts at intotheblock found that $47,000 was the strong support area. Since Bitcoin consolidated above it and established it as a clear support area, the probability of a continued Bitcoin rally increases. The analysts said:
“The IOMAP indicator reveals that #Bitcoin is now sitting on the strongest level of support. This level of on-chain support is located between $46,2k and $47,7k. Here, more than 1.66 million addresses previously acquired roughly 878 thousand $BTC.”
Based on this trend, as long as Bitcoin stays above $47,000, the bullish market structure would be retained.