Bitcoin may have had a less-than favorable weekend, but that hasn’t been bad news for its digital currency. The cryptocurrency dropped to $20,000 last week and has been trending lower since then. Despite all the efforts of the bears, it has managed to keep the $19,000 level. There are many factors that have contributed to this, but the most important is the strong support at this level.
Get Support Starting at $19,000
The digital asset, which had struggled to keep above $19,000 during most of the week, eventually found its feet above $19,000. Because bitcoin’s previous peak was at this price, it is crucial that they keep the currency above $19,000. However, it has broken below this level multiple times already this year. The recovery has reached above 19,000 and bulls appear to be in their right place. This level of support is growing.
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Bitcoin investors are driving this trend, using it as an incentive to cheaply buy digital assets. The most active animal during the low investor sentiment has been whales. These whales are continuing to purchase their tokens directly on-the-spot.
The data shows that wallets holding more than 1,000 BTC added 140,000 BTC every month, increasing their total holdings by 8.69 million BTC. The total supply of bitcoin is now held by these Bitcoin Whales at 45.6%.
Source: BTCUSD tradingview.com| Source: BTCUSD on TradingView.com
Not only are the whales buying bitcoin, but so is everyone else. These prices have been a boon for smaller holders who hold less than one bitcoin. These holders have been adding to their holdings at an average rate of 36.750 BTC each month. This brings their total to 1.12 Million BTC or 0.2%.
Bitcoin to Hold on?
Bitcoin had started a new recovery trend, which has seen the price rise to $19,300 as of Monday morning. It has given bitcoin a positive start to the week, even though it is not significant.
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However, bitcoin continues trading below key technical levels like the 50-day average movie. Because there’s not enough demand, bitcoin is unlikely to sustain its recovery trend for the rest of this week.
The price may recover to $19,500 but there could be another downtrend. The $19,000 support will be put to the test. If bitcoin holds and there is a substantial spike in market demand, then the $20,500 level will be the next significant resistance.
Featured Image from FortuneBuilders. Chart by TradingView.com
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