Bitcoin repeatedly fails at an all-time high: What does BTC expect in the medium term?
Whales on Bitfinex have been busy accumulating after the recent Bitcoin dip. The current market trend shows that extremely low price targets, such as the already feared $14,000, are less likely in the near future.
Bitcoin fell briefly in a sharp drop within one day to around $17,600. It pulled all the major Altcoins down, causing the market to correct rapidly within Crypto Genius about 18 hours.
However, after the initial correction, Bitcoin is now beginning to recover and Bitfinex is seeing decent buyer demand from Bitcoin whales.
A pseudonymous technical analyst has tracked large buy orders to short-term support levels, suggesting that a deeper decline is unlikely for the time being. The analyst:
„Bitfinex has accumulated in this area. I don’t think we’re seeing 14,000 or whatever crazy targets the bears have, but if we fall that low, it’s time to put the balls so low that we are back at 10,000“.
Other traders and analysts have noted a similar trend. A trader known as „ByzantineGeneral“ found that Bitcoin’s recovery coincides with an increase in buyer activity on Bitfinex.
Historically, Bitfinex has long been considered a whale market. In the past, there were many high net worth Bitcoin buyers who bought BTC after major corrections.
Not all traders are convinced
In the short term, however, some traders remain cautious about Bitcoin.
A pseudonymous trader called „Salsa Tekila“ writes that he would consider a bullish trajectory for Bitcoin if BTC continues to rise on Thursday. Until that happens, the bearish perspective remains. The trader:
„If we get a strong Thursday, I will give up the bearish $BTC bias and prefer dips over reps. At the moment this recovery is a selling opportunity. I will treat it as such until proven otherwise. The reason for this is the weak market reaction to much of the recent bullish news. It is possible that something has shifted.“
A reassuring sign for Bitcoin in the foreseeable future is the strong recovery of the so-called „OG“ Altcoins. Ripple’s XRP rose 18% from the low for the day, reflecting investors‘ appetite for risky assets within the crypto-currency market.
In the short term, the key to the momentum of the Bitcoin price remains above the $18,300 support range. Since BTC breached the $18,000 mark in November, the $18,300 range has consistently acted as a key support level.
Recovering $18,300 and moving closer to $18,800-19,000 would probably restore confidence in the market. So far, BTC is trading above $18,400 and showing signs of breaking through the $18,500 to $18,800 resistance range.
A concern for Bitcoin is the recovery of the US dollar index. The DXY began to recover from a monthly support level, which could pose a threat to BTC’s recovery.