Bitcoin breaks above $40,000 once again as the cryptocurrency eyes $50,000.

Bitcoin is preparing for another run to its all-time high at $42,000 as the crypto industry turns cautiously bullish.

The price of Bitcoin is showing signs of a new winning rally as the cryptocurrency breaks the $40,000 resistance area. There is a combination of optimistic on-chain data points and a favorable market structure that is leading analysts and traders to anticipate an impending Bitcoin breakout to a new all-time high. In the short term, the $38,000 and $40,000 levels remain the biggest hurdles for Bitcoin. The longer BTC took to break out of $40,000, the higher the probability of a potential correction was imminent.

 

Critical for bitcoin to stay above $40,000 in the foreseeable future.

It is critical for the leading cryptocurrency to surpass the $40,000 level and stay above it in the foreseeable future. Bitcoin has already spent nearly three weeks under $38,000, causing its short-term price cycle to stagnate and lose momentum. On Feb. 6, Bitcoin finally broke out of the $38,000 level, establishing it as a support level. One positive on-chain data point that raises the chances of a Bitcoin breakout is the increase of whale addresses. Analysts at Santiment tweeted that the crypto whales have continued to accumulate despite the increase in the cryptocurrency price.

 

More than 200 new whale entities have appeared in the network.

Since the beginning of this year, more than 200 new whale entities have appeared in the network, which supports the case that big institutions are arriving. The on-chain data provider suggested that these could be intuitional accounts, adding “data supporting the case that institutions are arriving.” In December, Glassnode reported that 78% of the circulating Bitcoin supply is illiquid and hardly accessible. An increase in Bitcoin Whales points to bullish investor sentiment as large amounts of BTC are being hoarded, reducing sell pressure.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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