Bitcoin is approaching the area of high interest around the current level for the first times since the beginning of 2022. Some relief has been seen from macro factors that are putting selling pressure upon its price action. A new narrative has revigorated bulls: Bitcoin as pristine collateral.
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Bitcoin currently trades at $47,000. There is a 7% profit and 5% profit over the last 7 days and 24-hours.
The current bullish price action could have many factors. Bitcoin is supported by Terra and Luna Foundations new narrative.
The entity announced that it would purchase billions in Bitcoin to help support their U.S. dollar pegged native stablecoin, UST. Additionally, Anchor will guarantee the 19% APY, a protocol that currently offers a 19% APY, to the crypto with the highest market cap.
The new narrative coming out of this ecosystem, together with Terra’s growing popularity, could have managed to attract fresh capital.
Data from Material Indicators suggest the new buyers pushing BTC’s price from the mid $30,000 have deep pockets. This price action has been bought by investors who have placed bids of $100,000 to whales that place bids between $1 million and $10 million, as shown below.
In the meantime, either retail investors (yellow on the chart), or smaller order investors (red on the chart), have decreased their activity. The chart below shows that this trend continues since 2022. This suggests institutions are more bullish than the average investor.
Material Indicators reports a stack with selling orders around $48,000 for shorter periods. These levels may act as resistance for the near term.
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At $48,000, there are approximately $11,000,000 in sales orders. There are approximately $50,000 in selling orders. This could offer additional resistance.
Bitcoin may move in a sideways direction as the bulls push for a break through those levels. Bitcoin currently has over $25,000,000 worth of asks. If you are looking for support, $46,000 could be a good place to start. There are $6 million worth of buying orders at those levels.
A break above $50,000 in the short term could push BTC’s price back to previous highs as it would confirm the strength of the current price action.
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Bitcoin is displaying conviction, and in fact has briefly been able decouple from traditional markets during the current macro-economic outlook. Mike McGlone is Senior Commodity Strategist with Bloomberg Intelligence. said the following on BTC’s price as equities weakened:
Bitcoin: Is Bitcoin taking a risk-off baton? 1Q may be just another blip in the trend of rising risk assets amid the highest inflation in 40 years and war in Europe, yet our bias is that the 2022 endgame isn’t likely to be that easy. Bitcoin — is showing divergent strength.