Bitcoin Bulls Back on Track: Will the Push Above $40K Succeed This Time?
- The bulls have been struggling to gain decisive control over Bitcoin in recent days and weeks.
- Any rally is sold aggressively as the bears aim to push BTC back to $30,000.
- Despite this, the cryptocurrency has been able to hold in the sub-$30,000 region, and any dip below $30,000 has been met with massive support from the buy side.
- Then this morning, BTC was able to push above $35,000.
- There is a possibility that this support is coming from institutional buyers.
- One trader comments that an on-chain trend seems to indicate that another uptrend could be imminent.
Bitcoin has struggled in both directions, but the aggressive selling on each pump attempt suggests that the bears may have the advantage at the moment.
However, the slight weakness in the Immediate Bitcoin app cryptocurrency at the moment has not been enough to trigger a prolonged downtrend, and many analysts remain bullish in the short and medium term.
On-chain data supports this sentiment, as spot reserves of BTC on exchanges have fallen rapidly in recent weeks.
Bitcoin struggles for momentum, bulls push BTC above $35K
Currently, Bitcoin is trading at $35,400. The recent rally may have come about due to Elon Musk’s recent appearance at Clubhouse, leading many to speculate that he would talk about Bitcoin and perhaps make a big announcement.
He did comment that he believes BTC is on the cusp of mainstream acceptance. Earlier, Elon Musk had stated that he was „late to the party“ but supported Bitcoin.
Many interpret „late to the party“ as an indication that he may have bought Bitcoin.
This on-chain trend heavily favours the bulls
One analyst points to the balance of spot Bitcoin on exchanges as a bullish trend that seems to favour an imminent uptrend.
According to the report, global BTC spot reserves are now at their lowest level since the macro low in December 2018.
„Spot reserves fell quite a bit yesterday (which is bullish). Global $BTC spot reserves are now at their lowest level since the macro low in December 2018.“
Unless Bitcoin (Go to Buy Bitcoin Guide) breaks below key technical levels in the medium term, the current consolidation phase is likely to see the cryptocurrency move higher in the near future.