Bitcoin Close to Recovery After Sinking Back Below $6k
Bitcoin, although showing much volatility during the weekend, is close to recovery after sinking back below $6k.
After the weekend, Bitcoin has not been doing well but it hasn't been all bad for the digital asset either. The cryptocurrency fell below $20,000 after it had trended low towards the end of last week. It was able to hold on to $19,000 despite efforts from the bears to pull it down. This was due to a number of factors but most importantly is that support has been forming at this level.
The price of Bitcoin (BTC) was above $19,000 at the time
After struggling to stay above $19,000 for most of last week, the digital currency had subsequently found its footing above $19,000. This price point is important for bitcoin because it was where its previous cycle peak had occurred. Although it had actually broken below this point multiple times already this year. But with the recovery above 19,000 once, the bulls seem to have found their place and the support at that level has been growing.
Bitcoin investors are taking this as an opportunity to buy the digital asset at a discount. Whales have been the most active during this time, even amid very low investor sentiment. These whales who are buying their tokens on spot continue to fill their bags.
Data shows that these wallets that hold more than 1,000 BTC on their balances have added 140,000 BTC per month. As a result, the total holdings of the bitcoin whales increased to 8.69 million BTC. This means that these bitcoin whales now own 45.6% of total circulating supply.
Smaller holders with a total of less than 1 BTC have also been buying bitcoin at these high prices. They have added to their balances at a rate of 36,750 BTC per month, and now they hold 1.12 million BTC, or 0.2% of the total supply.
Will Bitcoin continue to be valuable?
At the start of Monday, bitcoin began a new recovery trend that has pushed its price above $19,300. Although this is not a significant recovery by any means, it has put the digital asset on a positive note for the new week.
Despite the fact that the digital asset continues to trade below important technical levels such as the 50-day moving average, it has not been able to sustain its recovery trend. This is because there is not enough demand to offset the coins being dumped by sellers.
While the price is likely to recover above $19,500, there may be another downtrend before the day is over. This will put the mounting support at the $19,000 level to the test. If bitcoin can continue to hold and if a significant spike in demand occurs, then the next major resistance awaits it at $20,500.
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