Strong hands have already purchased up nearly all of the supply from those who acquired BTC at all-time highs in November and have since sold.
As the week proceeds, Bitcoin (BTC) is “looking quite good,” with bulls lining up challenges for several key resistance levels.
Filbfilb, an analyst at trading suite Decentrader, joined increasingly upbeat mood about the prognosis for BTC/USD in a Telegram update on March 2.
The trader is looking for levels above $40,000.
Bitcoin has surged to threaten February highs after stunning the market with a breakout Monday. Investors and traders have reacted positively to the news, despite the fact that it has yet to beat them, and sentiment measures reflect a rapid shift in the market.
After BTC/USD crossed both the 50-day moving average (MA) and a “huge” weekly level, both of which could now operate as support, the prognosis is just as positive for Filbfilb.
“In the middle of the week, Bitcoin is looking fairly nice. HTFs have a few important levels that are being tested “he summed up
In a worst-case scenario, the point of interest for bulls to retain is $40,770, which would ideally constitute the weekend’s minimum closure on 3-day timeframes.
“It’s a bit of a strange scenario,” Filbfilb said of the present macro position, “actually on the verge of anything being possible, given the turmoil.”
Despite the current state of global markets, indicators that the worst is over for crypto as an asset class are beginning to emerge.
Both Bitcoin and related stocks look to have formed a “double bottom,” according to Jurrien Timmer, director of global macro at Fidelity Investments in the United States.
As a result, the current February highs of slightly about $46,000 should be convincingly flipped to support for BTC/USD to continue.
Looks like a potential double-bottom is in the making for BTC and the related equities. pic.twitter.com/gzbVqdG7Pg
— Jurrien Timmer (@TimmerFidelity) March 1, 2022
Support on the daily chart continues to rise.
Traders have been increasingly positive in recent days, according to orderbook data from major exchange Binance.
Bids have risen in lockstep with Bitcoin’s price, with new demand now hovering around $43,200. Meanwhile, $45,000 is still a hotspot for sell-side pressure.
Zooming out, however, data from on-chain analytics firm Glassnode this week reveals that nearly every buyer at November’s $69,000 all-time highs has now capitulated, reducing general inclination to depart at price points between there and current spot.
“During this 2.5-month period of consolidation, prominent buyers transferred a significant amount of supply into exchanges for sale. “Higher conviction buyers eventually absorbed this supply, with the cost basis of these coins being more heavily weighted between the $29k and $40k price range,” it noted in its latest weekly email, “The Week Onchain.””
“This behaviour depicts a large-scale shift of weak to strong hands.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
