Bitcoin (BTC) closed in on its highest level of the month on March 25, with traders hoping for an end to months of consolidation.
Terra’s BTC stash nears $1 billion
With that, the pair was under $1,000 away from cracking the monthly high around $45,330.
For traders, the yearly open at $46,000 was now of increasing importance.
$46k is the most important price for #Bitcoin to break through in a very long time
— Matthew Hyland (@MatthewHyland_) March 24, 2022
Crypto Ed, however, even suggested that on the strength of the breakthrough of lower resistance levels, $46,000 may not end up a successful bet.
“What happens usually at such an obvious resistance? BTC bursts through, fueled by a short squeeze. Those waiting for 46k to break are likely to be left behind. 3rd time is a charm,” he commented alongside a chart.
Buy-ins from blockchain protocol Terra for its new stablecoin, a source of bullish sentiment this week, continued, with its wallet containing 21,323 BTC ($947 million) at the time of writing.
Interest in the move was palpable, not least given that the largest corporate BTC treasury, that of MicroStrategy, contained just over 125,000 BTC. Should Terra fulfill its goal to back its TerraUSD (UST) stablecoin with $10 billion in BTC, the firm would ultimately own around 224,400 BTC — twice as much.
Praise be to the whales?
For Filbfilb, co-founder of trading suite DecenTrader, there was cause for optimism that this slow grind toward resistance could endure, unlike previous attempts to end the sideways action.
“After what felt like an eternal sideways grind, Bitcoin has now been trending up the past couple of weeks as most of the market remains in disbelief on this near-term rally,” he began in a market update Friday.
“It appears whales had other intentions though, and we have seen a steady consistent bid for Bitcoin ever since this significant wall of bids appeared over at Bitfinex at $37,000.”
Filbfilb continued that Bitfinex whales had made a clear statement by putting in buy support at $37,000 during a consolidation period, and with that, the odds were on for a trip to the resistance wall around $46,000.
“Why is this so significant? Because for years now, Bitfinex has been used by Bitcoin whales to push $BTC price around using these bid / ask walls. So when price and sentiment are at extremes, it is always worth paying attention to the order books at Bitfinex to see when these big walls appear,” he continued.
“It is also worth noting that while it could get pulled, the next major wall is currently sitting at $45,500–$46,000.”
Should the yearly open no longer constitute the psychological ceiling for Bitcoin, the 200-day moving average near $47,900 would be the next port of call, the update added.