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Bitcoin (BTC) Makes Crucial Move

Published 05/20/2024, 04:44 AM
Updated 05/20/2024, 08:00 AM
© Reuters.  Bitcoin (BTC) Makes Crucial Move

U.Today - Bitcoin's most recent reversal at $67,000, toward $65,880, was a worrying sign for investors as it would mean that the asset could not gain a foothold above the 50 EMA resistance level. Luckily, the situation has changed, and Bitcoin managed to paint a green candle in the last few hours. This could be a sign that BTC is gearing up for another push toward the long-anticipated $70,000 mark.

Bitcoin has been consolidating between $65,000 and $67,000 in the last few days, trying to break above critical resistance levels. The 50 EMA has been the most important threshold for BTC to break, and the recent bullish momentum suggests that BTC might be able to overcome this barrier and leave it behind. A successful breach of the 50 EMA could set the stage for a rally toward $70,000.

Analyzing the on-chain data, we see a substantial number of large transactions, which indicates increased activity among whales. Over the last 24 hours, there have been 11.8K large transactions, hitting the seven-day high of 17.89K on May 15, 2024. This surge in large transactions is a positive sign, as it shows that big players are still actively trading Bitcoin, potentially driving the price higher.

Furthermore, the In/Out of the Money Around Price (IOMAP) data reveals that a significant number of addresses are "in the money" at the current price levels. Approximately 5.96 million addresses, or 71.14%, are profitable, which provides a solid foundation for bullish sentiment. These addresses could act as a support level if Bitcoin faces another downturn, as holders might be less likely to sell at a loss.

The next major resistance levels are between $66,628 and $67,788. If Bitcoin can break through this zone, it will likely target the $70,000 mark. The data suggests that there is a strong chance of this happening, especially with the current bullish momentum and the increased activity among large traders.

This article was originally published on U.Today

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