After Bitcoin (BTC) faced strong downward pressure last weekend, the market has recovered. The mega-cap coin has reclaimed the $40,000 level and appears set to consolidate in the coming days. Below are the key points to note:
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The recent rally has been driven largely by dip-buying from BTC whales.
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$38,000 has emerged as a preferred buy-the-dip level for large wallets.
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BTC is likely to maintain an upward bias and test $45,000.
Data source: TradingView
Bitcoin (BTC) – Price Analysis and Outlook
For much of 2022 Bitcoin traded within a relatively stable range. After bottoming near $32,000 in February, BTC recovered and now sits just above $40,000. Downside risk appears capped around $35,000 — the coin has not fallen below that level in the past two months.
This resilience is likely linked to dip-buying by large Bitcoin holders, who have accumulated around the $38,000 mark. Each time BTC dipped below $40,000 recently, buying pressure has pushed it back up almost immediately.
At present, Bitcoin will aim to consolidate gains above $40,000 and attempt another run at $45,000. Whether bulls can generate enough momentum to push past $45,000 remains uncertain. The coin has struggled to overcome its 200-day simple moving average near $49,000, and we do not expect that to change in the near term. As a result, upside potential is currently limited toward $49,000.
Should You Follow the Bitcoin Whales?
Tracking large wallets can be a useful strategy when investing in cryptocurrency. Recent whale activity suggests they have been successful in picking attractive entry points.
The whale accumulation level near $38,000 has produced solid returns over recent weeks, so retail investors may find value in observing whale behavior when trading BTC. That said, following whales should be combined with your own risk management and timeframe, since large holders may have different objectives and liquidity needs.