$46,000 is now the next level of interest for traders, as Terra continues to buy BTC behind the scenes.
On March 25, Bitcoin (BTC) closed in on its monthly high, with traders looking for an end to months of consolidation.
Terra’s Bitcoin holdings are approaching $1 billion.
TradingView data showed BTC/USD consolidating recent advances to reach $44,698 on Bitstamp on Friday.
With that, the pair was just over $1,000 short of breaking over the monthly high of $45,330.
For traders, the annual open at $46,000 was becoming increasingly significant.
$46k is the most important price for #Bitcoin to break through in a very long time
— Matthew Hyland (@MatthewHyland_) March 24, 2022
Crypto Ed, on the other hand, stated that $46,000 may not be a profitable investment based on the overcoming of lesser resistance levels.
“What typically occurs in the face of such blatant opposition? BTC explodes through, aided by a brief squeeze. Those that are waiting for 46k to break will almost certainly be left behind. The third time is the charm, “He made a statement with a graph.
Terra’s buy-ins for its new stablecoin, which has been a source of bullish mood this week, have continued, with its wallet holding 21,323 BTC ($947 million) at the time of writing.
Interest in the move was apparent, not least since MicroStrategy’s BTC treasury totaled just over 125,000 BTC. If Terra succeeds in its goal of backing its TerraUSD stablecoin with $10 billion in Bitcoin, the company will eventually control around 224,400 BTC – more than twice as much.
The whales deserve praise, don’t they?
Unlike past attempts to stop the sideways action, Filbfilb, co-founder of trading suite Decentrader, had reason to be optimistic that this gradual crawl against resistance would endure.
“After what felt like an eternity of sideways movement, Bitcoin has been going higher over the last couple of weeks as the majority of the market continues to be sceptical of this near-term gain,” he opened Friday’s market update.
“However, it appears as though whales had other plans, as we have seen a constant consistent bid for Bitcoin ever since this big wall of bids appeared at Bitfinex at $37,000.”
Filbfilb proceeded by stating that Bitfinex whales made a clear signal by establishing buy-support at $37,000 during a consolidation period, indicating that the chances were stacked in favour of a journey to the resistance wall near $46,000.
“Why is this so vital? Because Bitfinex has been utilised for years by Bitcoin whales to manipulate the price of $BTC via these bid / ask walls. Therefore, when price and sentiment are at extremes, it is always worthwhile to monitor the Bitfinex order books to determine when these large barriers occur “Continuing, he stated.
“It is also worth mentioning that, while it is possible that it will be removed, the next big wall is now priced between $45,500 and $46,000.”
If the annual open no longer serves as a psychological ceiling for Bitcoin, the update noted, the 200-day moving average near $47,900 would be the next target.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.