Bitcoin Weekly Forecast: BTC next target is $70,000, but whales are selling

Bitcoin had a fantastic week jumping to a new all-time high at $61,844 thanks to weakness from the U.S. dollar after the Federal Reserve issues a FOMC statement. The flagship cryptocurrency has maintained its daily uptrend and targets $70,000 next. 

Big players continue to show their interest in Bitcoin and cryptocurrencies

Morgan Stanley, one of the largest investment banks in the United States became the first to offer its wealthy investors the chance to access Bitcoin funds. The bank will launch access to three funds that enable the ownership of Bitcoin. 

The bank also issued a statement only allowing wealthier investors who have at least $2 million in assets held by the firm. Similarly, investment firms that want to invest in Bitcoin will be required to hold at least $5 million at the bank to qualify. 

The trend continues as other banks also have shown their interest in digital assets. The Deutsche Bank expects governments around the world to start regulating Bitcoin by the end of 2021. In a 18-page study by the Deutsche Bank Research, the subsidiary of Deutsche Bank, it says that Bitcoin price could continue to rise as long as other companies continue to enter the market. 

However, despite the improvement in cryptocurrency regulation across the world, the U.S. has yet to approve a Bitcoin ETF. The VanEck’s Bitcoin ETF application will have to be reviewed again soon. The Regulator has only 45 days to approve it or deny it, but it could also extend the period. 

There have been many attempts in the past by various firms to open a Bitcoin ETF in the United States. Even worse was India’s Bitcoin ban rumors this week. Once again, new rumors from India emerged about a potential cryptocurrency ban. However, according to various regulators from the country, the ban is now less likely to succeed.  

Bitcoin whales have been profit-taking in the past months

The rise of Bitcoin price has been extremely profitable for whales which have been taking a lot of profit in the past two months. Since February 10, the number of whales holding between 10,000 and 100,000 BTC has dropped from 97 to 89 currently. This is a significant drop which coincides with a decline in smaller holders with 1,000 to 10,000 coins. 

BTC Holders Distribution chart

On the daily chart, the most significant support level in the short-term is the 12-EMA at $56,600. A breakdown below this point would drive Bitcoin price down to the 26-EMA at $53,574. The next target would be $52,100 at the 78.6% Fibonacci level.

BTC/USD daily chart

On the other hand, since Bitcoin is facing weak resistance ahead, a breakout above the previous all-time high of $61,844 would drive the digital asset towards the psychological level at $70,000 and as high as $74,124 at the 127.2% Fib level in the long-term.