Bitcoin price topped $ 51,000 after a week of stagnation. Traders are becoming more optimistic about BTC’s near-term price development as it gains momentum.
Whales buy bitcoin
According to CryptoQuant’s on-chain data, whales continue to accumulate bitcoin.
At the $ 48,000 level, on-chain data suggests wealthy investors bought BTC to protect the support area.
TraderKoz, a pseudonymous trader, said Bitcoin was above midfield once it broke $ 49,000. He said Bitcoin is nearing the $ 52,000 level. He said:
“The initial support continued and now we’re back above midfield. Time to send it to 52,000 guys. “
The price of Bitcoin with key levels was $ 49,000. Source: TradingView.com
Above $ 52,000 based on Bitcoin’s technical structure, the natural target is the resistance area of $ 56,000, followed by the all-time high.
Another trader known as Il Capo of Crypto shared a similar opinion, stating that the rally above $ 50,000 means the market is bullish.
$ BTC
Good thing it’s over $ 50,000 again. pic.twitter.com/blskwYPaIq
– the boss of Polkadot (@CryptoCapo_) March 3, 2021
What happens next?
In the short term, the key is whether Bitcoin breaks above $ 56,000 due to strong volume and market sentiment.
A breakout above this would likely bring BTC to around $ 60,000 based on engineering structures and the Fibonacci sequence.
Given that Bitcoin tends to decline on weekends and reverse on weekdays, the overnight reversal was largely expected.