Bitcoin

Bitcoin Price Rejects Strong Support Levels, Will It Hit the Target Set at $56k?

Highlights

    Bitcoin price bounced well failed to crack the support levels, anticipating a fair bounce back to the upper limits

    The bitcoin whales accumulate more BTC by forming more bearish traps to squeeze the weak hands

Is Bitcoin becoming a Man-Made Centralized Asset?

Bitcoin price has always attained the spotlight in the entire crypto space as it impacts the other assets too. Showcasing a sense of stability, BTC price in recent times is trending with less volatility eliminating steep dumps, yet rallies like a giant. 

The increased number of whales in the Bitcoin ecosystem continued to melt the weak hands to acquire bitcoins as much as possible. Resulting in the Whales becoming stronger and stronger offlet, probably managing the Bitcoin price variation too. 

Coinbase recorded a huge number of BTC outflow in the past trading day when BTC price was around $48K. Interestingly, such a large outflow was recorded a couple of times before in the past month when the price of Bitcoin was $48 then as mentioned by an analyst.

Indicating the institutional buying levels maybe $48,000 and hence bitcoin plunge below these levels are materialistic. Yet another analyst mentioned that Bitcoin’s current support levels are very strong.

He also says that the BTC purchases in between $46K and $48K have spiked enormously. Nearly 1.66 million addresses worth more than $878,000 have been recorded at these levels and hence a steep Bitcoin plunge may not be a real deal.

Will Bitcoin price rally smash the target?

Bitcoin price rallied very remarkably flipping the support levels at $47,300 and surging towards the initial resistance at $50,000. With the flip, the price broke the ascending wedge around $45,000 and currently trading very close to $50K.

To have a continued bullish trend, the price needs to smash the strong resistance area around $51,000. Once these levels are reached, the price may retest the upper resistance levels at $56,806 according to a popular analyst, MMCrypto.

https://twitter.com/MMCrypto/status/1366993558276825089

The Bitcoin price rally appears to have been slowed yet not halted. With Goldman Sachs entering the crypto space, many speculated the price may slash as it did in 2017. However, the BTC price appears to be on track towards the $100K target by the end of 2021 as many smart traders have jumped into the ecosystem.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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