Bitcoin Price Forecast: Crypto whales add volatility to the market as BTC/USD heads towards $7,000

Bitcoin managed to settle above the critical resistance area.
BTC whales move the coins to and from cryptocurrency exchanges.
The vital resistance is created by SMA100 weekly at $7,150.

BTC/USD is hovering around $6,700 at the time of writing. The coin has gained over 14% of its value in recent 24 hours as the cryptocurrency market improved sentiments after the US FED announced its infinite stimulus program to mitigate the economic consequences of Coronavirus. Bitcoin's market capitalization reached $122 billion, which is 65.8% of the total market.

Whales send contradictory signals

According to the Whale Alert service, someone performed 15 BTC transactions worth of 1,000 BTC from Huobi to an unknown account. Thus the aggregated amount transferred to a single address reached 15,000 BTC which is roughly $90 million.

The transactions were made before the US Fed Reserve announced ‘QE Infinity’ and Bitcoin smashed above $6,000 and hit $6,600 in a matter of hours.

This move may mean that a large investor bought BTC while the coin was under pressure and moved the huge amount to a cold wallet long-term storage. Such behavior is typical for cryptocurrency whales and may signal that BTC has reached the bottom.

However, investors should be careful as we may see another bearish leg before the growth is resumed. Another large cryptocurrency exchange, OKEx, enjoyed a steady flow of Bitcoins. According to Whale Alert, investors transferred about 4,000 to the exchange in recent 24 hours. This happens when someone gets ready to dump their coins.

BTC/USD: Technical picture

From the long-term perspective, a sustainable move above $6,500 improved the technical picture of the first digital coin. This area served as an upper boundary for the previous consolidation channel. Now that it is out of the way, $7,000 becomes a possibility. However, even stronger resistance is located at $7,150. The weekly SMA100, which is on the approach to this area, may stop the recovery and trigger the downside correction back below $7,000. Once it is out of the way, the upside is likely to gain traction with the next focus on $8,000 and $8,200 reinforced by the daily SMA100.

Considering the upward-looking RSI on the daily chart, the upside momentum looks likely at the current stage.

On the downside, a sustainable move below $6,500 may trigger short-term longs liquidation and push the price towards $6,000. The overall trend remains bullish as long as the price stays above this barrier. If it is broken, BTC may enter a consolidation phase with a bearish bias.

BTC/USD daily chart

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram