The recent struggle that Bitcoin has undergone for the last 26 days, l looks like it is over now. Recently, Bitcoin experienced a strong bullish breakout of the inverted head and shoulder pattern. Following this breakout, it has been observed that three fresh wallets have significantly withdrawn Bitcoin from Binance.
Whales invested before the price surge
On February 7, 2024, the on-chain analytics firm Lookonchain posted on X (formerly Twitter), highlighting that three fresh wallets had added a substantial 2,741 Bitcoin worth around $118 million from Binance, the world’s largest cryptocurrency exchange, just before the breakout.
Analyzing the actions of these fresh wallets suggests they might be traders, given the substantial amount of Bitcoin added before the breakout. Additionally, more whales were reported to have added significant Bitcoin in the past day, as per Todayq News. Over the last two weeks, Bitcoin whale activity has increased significantly by over 3.6%, according to the report by Todayq News on February 7, 2024.
With increased whale activity and investor support, Bitcoin is currently trading above $44,500. In the last 24 hours, it has experienced over a 3.5% upside momentum. Looking at Bitcoin over a more extended period, it experienced a 5.5% upside in the past 7 days, while in the last 30 days, the upside momentum was 2%.
Bitcoin technical analysis and upcoming price
Following the approval of the spot Bitcoin Exchange Traded Fund (ETF) in the United States by the Securities and Exchange Commission (SEC), the BTC price witnessed a significant drop from $48,000 to the $41,000 level. This drop was attributed to profit booking, as before the approval of the spot Bitcoin ETF, whales, and investors had significantly bet on Bitcoin. Their exit from these positions caused a price correction across the cryptocurrency industry.
According to expert technical analysis, Bitcoin has broken out of the inverted head and shoulder patterns with a strong bullish candle. In the last 26 days following the approval of the Bitcoin ETF, the BTC price attempted multiple times to surge above $44,500 but faced heavy selling pressure, preventing it from sustaining at that level.
However, the current bullish breakout of the inverted head and shoulder pattern may lead to a significant price surge in Bitcoin in the coming days. According to historical data, no hurdles or barriers are observed on the daily chart of Bitcoin until $47,000. This suggests that with the current breakout, we may witness a bullish move towards $47,000.
