Bitcoin rate of $44,214 is key price level
Bitcoin rate of $44,214 is key price level according to Bitcoin Whale cluster
Bitcoin Whale cluster show that BTC bulls need to keep Bitcoin price above $44,214 to increase the likelihood of the rally continuing.
Bitcoin Whale cluster data shows that the BTC price of $44,214 is the key short-term level that the dominant cryptocurrency needs by Profit Secret to defend. The Bitcoin price experienced a small sell-off in the last 24 hours after it hit a new all-time high at around $48,000. Since then, the price has dropped almost 8%, falling as low as $43,750 on Binance in the meantime.
Why is this level important for the Bitcoin price?
Bitcoin whale clusters form when large, wealthy investors buy at a certain price level and do not move their BTC. These levels often act as support or resistance levels because, in theory, such investors are more likely to buy more BTC at a level from which they believe there is further upside potential. At the same time, it also serves as a level for them to at least break even, i.e. trade without losses.
Analysts at Whalemap said that a loss of the $44,214 support level would likely lead to a short-term decline in the bitcoin price to $39,843. However, if the level holds, it would mean it has become a new support area. The analysts wrote:
The loss of $44,214 should open the door for BTC to visit $39,843 as there is not much support in between. However, for now, $44,214 should provide some support. There is also a lot of demand at 38k prices, so BTC should not fall below that level.
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On-chain data argues for a continuation of the BTC rally
There are several arguments in favour of a short-term uptrend from the Bitcoin price. First, according to researchers at Santiment, the number of active Bitcoin addresses and the exchange supply of stablecoins are high.
Probability of further Bitcoin price rally is increased by a rise in BTC addresses and quantities of stablecoins on exchanges
The combination of these two metrics points to an overall healthy uptrend for the Bitcoin price, supported by strong fundamentals. They tweeted:
Both active bitcoin addresses and exchange supply of stablecoins like USDT remain high, which is an encouraging sign that BTC can recover after today’s slight setback.
Additionally, the number of non-zero bitcoin addresses is also at a record high, suggesting that there is an influx of new buyers. Glassnode tweeted in this regard:
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Bitcoin price could continue to benefit from recent mass adoption
In addition to the favourable technical and fundamental factors, Kyle Davies, co-founder of Three Arrows Capital, said the cryptocurrency market is experiencing mass adoption.
In recent months, the bitcoin market has seen a massive surge in inflows from public companies and institutional investors. Through various investment vehicles, such as the Grayscale Bitcoin Trust and Coinbase Custody, institutional investors have bought large amounts of bitcoin. Davies said the „new paradigm of decentralised money“ has awakened, adding:
We are witnessing mass adoption, right here, right now. Guardians of the old world will convert, crypto natives will flourish. The new paradigm of decentralised money is awakening. Have no fear.
In the meantime, the crypto market is experiencing a perfect storm of technical and fundamental factors, complemented by a compelling macro narrative that is driving up the value of both major cryptocurrencies and DeFi tokens. In the foreseeable future, a continuation of the Bitcoin price rally is expected due to these factors.