Bitcoin is approaching high territory around its current levels, for the first time since the start of 2022. The cryptocurrency has seen some respite from the macro factors that put selling pressure on price action, and the new combo has revitalized the bulls: BTC as a sideways authentic.
At the time of writing, Bitcoin is trading at $47,600 with a gain of 7% and 15% in the last 24 hours and 7 days, respectively.
There are many factors that can contribute to the current bullish price movement. As mentioned, Bitcoin has a new narrative backed by the Terra ecosystem and the Luna Foundation.
This entity announced the purchase of billions of dollars in Bitcoin to support the US dollar, which is pegged to the original stable coin UST. In addition, the first cryptocurrency by market capitalization will be used to guarantee 19% APY from Anchor, a protocol that currently offers 19% APY to UST makers.
The new combo generated from this ecosystem, combined with Terra’s growing popularity, could have succeeded in attracting fresh capital.
Data from Material Indicators indicate that new buyers who are pushing the price of BTC from the mid-$30,000s have deep pockets. As seen below, investors with orders of around $100,000 (purple in the chart) for whales with orders from $1 million to $10 million (brown in the chart) have been buying at that price since March 15.
Meanwhile, retail investors (in yellow in the chart) or investors with smaller orders (in red in the chart) have been reducing their activity. This trend, as the above chart shows, has continued since the start of 2022 and indicates that the institution has been more bullish than the average investor.
On the lower timeframes, Material Indicators are posting a batch of sell orders at around $48,000. This may indicate that these levels can act as resistance in the short term.
Biggest Obstacle to Bitcoin’s Rally
There are about $11 million in sell orders at $48,000. Around $50,000, there are $14 million in sell orders that could provide additional resistance.
With orders over $25 million above its current price, Bitcoin could move sideways as the bulls gain strength to break above those levels. On the downside, $46,000 looks like a potential support area as there are $6 million in buy orders around those levels.
A break above $50,000 in the short term could push BTC’s price to previous highs as it would confirm the strength of the current price action.
In the current macroeconomic outlook, Bitcoin continues to show conviction and manages to break away from the traditional market for a brief period. Chief commodity strategist at Bloomberg Intelligence Mike McGlone said The following is on the price of BTC with stocks weakening:
Bitcoin taking a baton risk? The first quarter may be just another moment in the trend of rising risky assets amid the highest inflation in 40 years and war in Europe, however we lean towards the end of the 2022 game unlikely to be that easy. Bitcoin – shows mixed strength.