Bitcoin Breaks $56,000 With New Record Highs in Sight


Key Takeaways

Bitcoin is trading above $56,000 for the first time in months.
On-chain data shows that buying pressure is increasing.
Bitcoin faces one major resistance barrier ahead of new record highs.

Share this article

The pioneer cryptocurrency has proven doubters wrong after its most recent bullish impulse resulted in nearly $40 million worth of short positions liquidations. Now that Bitcoin has broken $56,000, new all-time highs appear to be on the horizon. 

Bitcoin Whales Accumulate

Bitcoin is still trending up.

The flagship cryptocurrency has gained nearly 2,400 points in market value in the last few hours as it attempts to advance toward new all-time highs. It broke $56,000 for the first time in five months early Monday and is currently a 13% move away from its $64,800 peak. 

On-chain data shows that the bullish price action is supported by buying pressure on the spot markets. Behavior analytics platform Santiment reveals that whales are contributing to the rising prices by accumulating large quantities of the asset.  

Addresses holding between 100 and 1,000 BTC have purchased over 60,000 BTC since the beginning of the month, worth approximately $3.4 billion. Meanwhile, more than 20,000 BTC have been removed from known cryptocurrency exchange wallets within the same period. 

Source: Santiment

Such supply and demand dynamics suggest that selling pressure is falling. Nonetheless, Bitcoin still has an obstacle to overcome before it can reach higher highs. 

Bitcoin Faces Obstacle Ahead 

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals that roughly 1.12 million addresses have previously purchased nearly 417,000 BTC at an average price of $57,900. A daily candlestick close above this resistance wall could pave the way for new all-time highs as the IOMAP shows no further barriers ahead. 

Source: IntoTheBlock

It is worth noting that Bitcoin must hold above the $54,900 support zone to avoid further losses. Slicing through this significant interest area may encourage investors to sell their BTC to prevent their investments from going “Out of the Money.” In this eventuality, a downswing to $50,000 could play out before Bitcoin resumes its uptrend. 

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Vitalik Buterin Slams El Salvador’s Bitcoin Adoption Policy

Buterin joins a long list of critics of Bukele’s controversial policy. Buterin Voices Concerns on Reddit Ethereum co-founder Vitalik Buterin has issued sharp criticisms of El Saldvador’s “mandatory” Bitcoin adoption…

Crypto Miners Are Stockpiling Bitcoin and Ethereum Rewards

On-chain metrics and company production reports show that Bitcoin and Ethereum miners are holding off from selling their mining rewards. The value of crypto held by miners has reached new…

U.S. Bank Announces Bitcoin Custody Service

U.S. Bank, the fifth-largest retail bank in the United States, has announced a Bitcoin custody service.  Big Banks Open to Crypto Custody Service U.S. Bank, which currently has custody of…

What is Impermanent Loss and How can you avoid it?

DeFi has given traders and investors new opportunities to earn on their crypto holdings. One of these ways is by providing liquidity to the Automated Market Makers (AMMs). Instead of holding assets,…



Source

Recommended For You

About the Author: wp4crypto

Leave a Reply

Your email address will not be published. Required fields are marked *