Bitcoin (BTC) approached its highest level of the month on March 25 and traders are expecting an end to months of consolidation.
Terra’s BTC Holdings Approaching $1 Billion
Data from Cointelegraph Markets Pro and TradingView showed that The BTC/USD pair consolidated recent gains to hit $44,698 on Bitstamp on Friday.
With that, the pair was less than $1,000 away from reaching a monthly high around $45,330.
For traders, the yearly open at $46,000 was now of greater importance.
$46k is the most important price for #bitcoin to break through in a very long time
— Matthew Hyland (@MatthewHyland_) March 24, 2022
CryptoEd, however, he even suggested that on the strength of the breakout of lower resistance levels, $46,000 may not end up being a successful bet.
“What usually happens in the face of such blatant resistance? BTC overshoots it, fueled by a short squeeze. Those waiting for the $46,000 level to be broken are likely to be left behind. Third time’s the charm,” commented next to the graph below.
Terra protocol purchases for its new stablecoin, a source of bullish sentiment this week, continued, its wallet holding 21,323 BTC ($947 million) at time of writing.
The interest in the move was palpable, especially considering that the largest corporate BTC treasury, that of MicroStrategy, contained just over 125,000 BTC. If Terra were to meet its goal of backing its TerraUSD stablecoin with $10 billion worth of Bitcoin, the company would end up owning about 224,400 BTC, double that.
Praised be the whales?
For Filbfilb, co-founder of the Decentrader trading suite, there were reasons to be optimistic that this slow progress towards resistance might endure, unlike previous attempts to end the lateral action.
“After what seemed like a never-ending sideways move, Bitcoin has been trending higher for the past two weeks as most of the market remains unbelieving in this short-term rally,” started in a market update on Friday.
“However, it seems that the whales had other intentions, and we have seen a steady supply of Bitcoin since this major offer wall appeared on Bitfinex at $37,000.”
Filbfilb went on to say that Bitfinex whales had made a clear statement by putting buy support at $37,000 during a period of consolidation, and with that, the odds were for a trip to the wall of resistance around $46,000.
“Why is this so significant? Because for years now, Bitfinex has been used by Bitcoin whales to push the price of BTC using these walls of supply and demand. So when price and sentiment are at extreme levels, It’s always worth paying attention to the order books on Bitfinex to see when these big walls come up.” continuous.
“It’s also worth noting that while it could be retired, the next big wall is currently between $45,500 and $46,000.”
Should the yearly open no longer constitute the psychological ceiling for Bitcoin, the 200-day moving average near $47,900 would be the next port of call, the update adds.
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