Data from the Bitcoin Whale Cluster (BTC) shows that the $ 44,214 is an important short-term level that the dominant cryptocurrency must protect.
As reported by Cointelegraph, Bitcoin has seen a sell-off in the past 24 hours after it hit a new full-time high of $ 48,000, with the price dropping nearly 8% to $ 43,750 on Binance.
Why is this level important to increase Bitcoin’s potential?
Whale groups form when whales or wealthy investors buy bitcoins at a certain price level and do not move them.
Often these levels act as support or resistance levels because whales are likely to buy more bitcoin at the level they hold or sell at break-even.
Pisces chart analysts said that losing the support level of $ 44,214 would likely lead to a drop to $ 39,843 in the short term.
But if the level continues, that means that there has been a new support zone after the rally driven by Tesla’s $ 1.5 billion purchase of BTC. Analysts said:
“A loss of $ 44,214 should allow BTC to reach $ 39,843, as there is no significant support in between. At the moment, $ 44,214 should provide some support. There is also a big demand at 38K, so BTC should not fall Below this level. ”
There are several arguments for Bitcoin’s short-term bullish path. Firstly, according to researchers at Santiment, the number of active Bitcoin addresses and coin exchanges is large.
The combination of the two indicates an overall healthy trend for Bitcoin, backed by solid fundamentals. They wrote:
“# Active Bitcoin headlines and stablecoin swap delivery like $ USDT remain elevated, which is an encouraging sign that $ BTC could recover from a moderate recovery today.”
Additionally, the number of non-zero bitcoin addresses is at all-time highs, indicating an influx of new buyers into bitcoin.
Collective adoption continues
In addition to the favorable technical and fundamental factors, Kyle Davis, Co-founder of Three Arrows Capital, said the cryptocurrency market is experiencing significant adoption.
In recent months, the Bitcoin market has seen a significant increase in the influx of public companies and institutional investors.
Through various investment tools such as Grayscale Bitcoin Trust and Coinbase Custody, institutional investors buy large amounts of Bitcoin.
“The new model for decentralized money has awakened,” Davis said, adding:
“We are seeing massive dependence here, now. Old world adherents will transform, cryptocurrencies will thrive. Awaken the new paradigm of decentralized money. Fear not.”
Meanwhile, the cryptocurrency market is experiencing a whole storm of technical and fundamental factors, complemented by a compelling macro story that is pushing the value of both major cryptocurrencies and DeFi tokens up.
For the foreseeable future, based on the Bitcoin market structure, the rally is generally expected to continue, given that the $ 44,214 whale group level will not be broken.