Bitcoin has come out of the weekend with a less favorable performance, but it is not bad for the digital asset either. After falling below $20,000, it turned lower late last week. However, the cryptocurrency has been able to maintain the $19,000 level despite the bears trying to pull it down. This has happened due to several factors, but the most important one seems to be getting support at this level.
$19,000. support on
After struggling to hold above $19,000 for most of the past week, the digital asset later found its footing above $19,000. This price point is important for Bitcoin as it is where its previous cycle peak occurred. Although it had actually broken below this point several times already this year. However, once recovery above 19,000, the bulls have found their place and support is increasing at this level.
Related Reading | Leading Crypto Exchanges See Negative Funding Rates, Have the Bears Taken Over?
This has been pushed forward by bitcoin investors who are taking it as a signal to buy the digital asset cheaply. Mostly, whales have been the most active during this time, even amid very low investor sentiment. These whales, who bought tokens on the spot, continue to fill their bags.
Data shows that these wallets holding more than 1,000 BTC added 140,000 BTC per month, bringing their total holdings to 8.69 million BTC. This means that these bitcoin whales now account for 45.6% of the total circulating supply.
BTC continues recovery trend | Source: BTCUSD on TradingView.com
It’s not just whales buying bitcoin. Small holders holding less than 1 BTC have also intensified their activity by buying at these prices. They have added to their balances at the rate of 36,750 BTC per month, bringing their total holdings to 1.12 million BTC, or 0.2% of the circulating supply.
Will bitcoin continue to hold?
By the early hours of Monday, bitcoin had started another recovery trend that took the price above $19,300. While this is by no means a significant improvement, it has given the digital asset a green signal at the start of the new week.
Related Reading | New bitcoin record paints incredibly bearish picture as BTC struggles at $19,000
Nevertheless, the digital asset continues to trade below key technical levels such as the 50-day film average. Because of this, bitcoin is less likely to sustain a recovery trend for the rest of the week as there is not enough demand to offset the coins being dumped by sellers.
This means that while the price is likely to recover above $19,500, there could be another downtrend before the end of the day. This will place rising support for testing the $19,000 level. But if bitcoin can hold off and there is a significant increase in demand in the market, the next major resistance awaits the cryptocurrency at $20,500.
Featured image from FortuneBuilders, chart from TradingView.com
obey Best Ovi on Twitter For market info, updates and the occasional funny tweet…