Bitcoin Eyes Forming a Weekly Higher Low, What Does This Mean?
A pullback to the $40,000 level reignited the formation of a higher low on the weekly chart.
Bitcoin (BTC) breached the psychological price of $40,000 on Feb. 26 after nosediving to lows of $34,000 based on geopolitical factors triggered by Russia’s invasion of Ukraine.
This pullback reignited a higher low on the weekly chart, as acknowledged by crypto trader Rekt Capital.
Source: TradingView
The formation of a higher low is crucial because it sets the base of an uptrend, given that higher lows and higher highs illustrate a bullish momentum.
However, BTC should hold the $37,000 area if an uptrend is realized. Crypto analyst under the pseudonym Gaah stated:
“The bullish structure within this sub-cycle should be maintained with the base at $37K for liquidity absorption (selling) and no longer $30.9K. $44.4K broken confirms resumption of short-term uptrend.”
Source: TradingView
An atmosphere of caution has engulfed the crypto market based on the geopolitical turmoil in Russia and Ukraine.
Nevertheless, relative calmness is being witnessed in the Bitcoin market based on the pullback realized, given that the leading cryptocurrency sank to lows of $32,800 in January.
On the other hand, Bitcoin whales have been making significant transactions despite the witnessed turmoil. Market insight provider Santiment explained:
“As Bitcoin prices bottomed out at $34.7K with Thursday's war news, whales have made some MASSIVE transactions. This has been the largest amount of both $100K+ and $1 million+ $BTC transactions since Jan. 24th, when prices jumped +15% the week following.”
Furthermore, addresses with at least 10,000 BTC have increased their portfolio since Feb.13, according to crypto analytic firm Glassnode.
Source: Glassnode
These statistics show that BTC whales have taken advantage of the downswing to accumulate more coins.
Meanwhile, analysis by IntoTheBlock recently illustrated that short-term holders were the primary drivers of the recent leg down as they continued liquidating their BTC investments.
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