FX.co ★ Have Bitcoin whales thrown a lifeline to cryptocurrency?

On the 4-hour timeframe, the technical picture that has developed at this time for bitcoin is even more visible. It can be seen that the quotes have passed the distance from the level of $29,700 to $40,700 almost without a single pullback, then they corrected a little. And now, they are again striving to accurately work out the upper border of the side channel. Thus, as we said earlier, the key level at this time is the $40,700 level and the further movement of the first cryptocurrency in the world will depend on its overcoming or not overcoming. Also, recently, information has been repeatedly received that bitcoin whales continue to buy BTC. Various analytical companies indicate that in the last 10 days alone, large investors have bought about 40 thousand bitcoin coins. It is quite possible that the last round of growth was partly caused by these actions of major players. However, it can be recalled that reports of new investments from large investors were received at a time when bitcoin was falling. Thus, purchases by large players of a large number of bitcoins by themselves are not a guarantee of growth for the cryptocurrency. Also, the general supply and demand for cryptocurrency is really important at this time. Bitcoin whales can buy bitcoin coins by the thousands, but if at the same time retail and small investors sell even more coins, then the bitcoin exchange rate will fall.

At this time, it is the mood of the market that can work wonders. Bear in mind that bitcoin is a very faith-dependent tool. Simply put, the more market participants believe that a new bullish trend is possible now, the more investments will flow into bitcoin, since everyone wants to join the hype, which can double your capital in a couple of months. A lot will depend on small and private traders, since there are much more of them than large and institutional ones. In general, in the next couple of days, there may be a real heat on the cryptocurrency market, and bitcoin may surprise everyone once again.

Technically, on the 4-hour timeframe, bitcoin quotes continue an upward trend inside the side channel of $29,700 - $40,700. And at the moment, we have already practically worked out the upper limit of this channel, to which there is only nothing left to go. Thus, the future fate of the cryptocurrency will be decided around the level of $40,700. We believe that after such a strong growth, which is not too justified by fundamental factors, a new decline to the level of $29,700 will follow. But in the case of overcoming $40,700, the upward movement may continue, and traders will be able to buy bitcoin with a target of $43,852.