An analyst suggests that Bitcoin could gain $10,000 if it successfully surpasses a significant resistance level before the next major catalyst for Bitcoin enters the market.
Crypto analyst and trader Ali Martinez, recognized as @ali_charts on crypto Twitter, has provided insights into the factors hindering Bitcoin, the world’s leading cryptocurrency, from reaching the $50,000 mark.
Bitcoin Faces Hurdles at $38,500, Potential for $10,000 Surge: Analyst
According to crypto analyst @ali_charts, Ali Martinez, the Bitcoin UTXO Realized Price Distribution Index has encountered strong resistance at the $38,500 level. This index illustrates how much BTC was acquired at different prices. Martinez suggests that if Bitcoin successfully breaks through this significant resistance, there’s a likelihood of BTC making strides toward the $47,360 price point. This represents nearly a $10,000 difference from the current Bitcoin price.
#Bitcoin UTXO Realized Price Distribution (URPD) suggests that $BTC faces stiff resistance at $38,500. But slicing through this barrier could help #BTC advance toward $47,360! pic.twitter.com/HSfvyVNnya
— Ali (@ali_charts) November 26, 2023
Since November 24, Bitcoin, often referred to as digital gold, has seen a decline of almost 3%, slipping from a recent high of $38,426. The surge to this price peak was accompanied by a substantial liquidation of Bitcoin short positions, totaling $2 million.
Signs of a Crypto Rally: Massive Liquidations and Whale Activity
A notable $71.15 million worth of crypto positions was liquidated across the cryptocurrency market, potentially signaling an imminent crypto rally.
According to Santiment, an on-chain data aggregator, whales displayed significant activity between August 19 and October 16, transferring a substantial amount of USDT (3.54% of the total supply) and 0.72% of the USDC circulating supply to crypto exchanges.
📊 From August 19th to October 16th, 3.54% of #Tether's entire supply, and 0.72% of #USDCoin's entire supply moved to exchanges. These transfers were the predecessor to the #crypto-wide rally from late October to mid-November. After a cooldown, $USDT & $USDC returning
(cont) pic.twitter.com/wXJpnQoYxb
— Santiment (@santimentfeed) November 26, 2023
These remarkable stablecoin transactions to trading platforms were identified as key drivers that ignited the rally across the entire cryptocurrency market from late October to mid-November, as per Santiment’s recent tweet.
Their report emphasizes that the flow of USDT and USDC (frequently used stablecoins for purchasing Bitcoin and Ethereum) back into trading venues is a crucial indicator, with potential implications for market caps to continue increasing in the final five weeks of 2023.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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