Bitcoin price is at make or break point as whale activity hit a peak over the weekend
- A large group of Bitcoin whales bought the dip on Coinbase, fueling a price rally before the end of 2021.
- Bitcoin price is now at a make or break point as consistent exchange outflows imply strong holding sentiment.
- Jeremy Siegel, a Wharton professor believes that Bitcoin has replaced gold as an inflation hedge.
- Analysts have predict a retest of $41,000, as there is thick volume support at this level.
Bitcoin traders pushed the asset’s price higher before the end of 2021 through large wallet investor activity on Coinbase. Analysts have predicted a drop in Bitcoin price and a retest of support at $41,000.
Bitcoin price is at key level at whale activity hits peak
Bitcoin price is at a make or break point as whale activity hits a peak in the asset. A group of large wallet investors who bought the Bitcoin dip on Coinbase in the last week of December 2021, fueled the demand for the asset.
The whale activity triggered a spike in Bitcoin price. However, the asset suffered a drop from its local top in the first two days of 2022. The overall trading volume and on-chain activity of Bitcoin dropped on Coinbase.
Jeremy Siegel, a Wharton professor believes that Bitcoin has stood out as a hedge against inflation, replacing gold. Siegel told CNBC in an interview, "Let's face the fact, I think bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold. Digital coins are the new gold for the millennials."
With its limited supply of 21 million and scarcity, Bitcoin has replaced gold for the millennial investor.
@mark_cullen, a crypto analyst and trader has predicted that large wallet investors are trying to push Bitcoin price lower. The analyst believes that the sell wall of 3,600 Bitcoins on FTX exchange implies that Bitcoin price is likely to hold $45,000 longer than intended.
-- $BTC Heatmaps --
— AlphaBTC (@mark_cullen) January 3, 2022
@FTX_Official whales are playing hard ball
3.6k #BTC sell wall aiming to push price down
#Bitcoins not going any higher till this whales get what they want#Crypto https://t.co/7JZ0j1abDq pic.twitter.com/rIBoQhGc1N
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
