News: There was a positive change regarding the future direction for cryptocurrency markets this week, owing to the rebound of Bitcoin’s (BTC) price to $42,000. Altcoins have, after massive bleeding in recent years, have now welcomed BTC’s trend change with powerful price moves as the market’s total capitalization dipped to $2 trillion yesterday. Trade volumes in crypto have increased by 40%, indicating that market participants are changing’ desire to purchase. This article will review the prices of the major crypto assets, the recent purchasing patterns of whales, and the forecasts for the short-term future of BTC.
Bitcoin Breakout
BTC has come out of a 3-month downtrend in a diagonal which began in November. When BTC volume of trading increased on February 4, BTC mustered enough steam to overcome multiple resistances of $38,200 and $38,700 on one day. The price soared over $42,000 later and was trading at $43,700 at 5 pm IST on the day. A new major hurdle for BTC is $45,500 and $47,000, while the support for short-term trading is at $42,700, which is the 50% EMA (exponential moving average). Although BTC’s growth has been sluggish over the past 24 hours, the volume of trading has grown by 53 per cent.
The recent price increase in BTC is believed to be the result of whales (large holders) who have over 100 BTC. According to the on-chain data platform WhaleMap large investors are accumulating between $36,000 to $38,000, indicating increased market confidence. Additionally, the lagging capitalists who are waiting for a dead-cat bounce (a short rise in the price of an asset, followed by a decline) are trying to get a grip on the price movement of Bitcoin, thereby pushing the demand for higher prices.
Ethereum whales on the move
🥳🥳 New #SHIB whale was born!!!
Holds 3,457,477,154,937 $SHIB ($115,998,358)
Transactions:
1⃣https://t.co/Thm9OcK8N9
2⃣https://t.co/WQPW4msbbIWelcome to the #ShibArmy Family! pic.twitter.com/TkejUCImgb
— WhaleStats – the top 1000 Ethereum richlist (@WhaleStats) February 8, 2022
Based on data from Etherscan which monitors transactions within the Ethereum blockchain, the top 1,000 whale-based wallets are building Shiba Inu since the latest price decline. Shiba Inu (SHIB) is the 13th biggest cryptocurrency of the moment by market value. With the increase in whale activity as well as the ongoing burning of coins, SHIB has become the most successful among the top 20 cryptos with 54% gains within a week. While memecoins like SHIB are not backed by solid foundations or use the hype and community surrounding it has been fueling the price of these coins. Investors are advised to conduct their research prior to investing large amounts of money in these coins, as they may be lost quickly when the market goes negative.
A short-term outlook is available on BTC and ETH
The market has changed to cautious optimism , with recent price changes augmented by positive news, such as the announcement of the accounting firm KPMG including Bitcoin as well as Ethereum into its financial statements. However, BTC has made significant gains from its lows of $32,900, is likely to experience a minor correction over the next few days, before attempting to move to the other end of $45,000.
Ethereum (ETH) after having been rejected at $2800 it broke from the downward trend at $2,700. ETH trades around $3,070. This is up 10% over the past seven days. In any event, ETH is expected to follow the BTC price trend in the near future , with close to $2,800 as a short-term support should a correction take place.
