This week, after a deep correction, the price of Bitcoin made two attempts to break above $42000. It managed to peak at $42685 on Jan 18 and $42589 on Jan 19. But staying above the 42000 level was short-lived. After each such attempt, the price of Bitcoin again fell below $42000.
Some analysts called it the start of a new bullish rally. But in fact, whales contributed to the short-term rise in the price of Bitcoin. According to Santiment, the largest addresses purchased 40000 coins in two days. On the chart, this was reflected in the form of an increase in the price of BTC by $1000.
Whales continue to hold Bitcoins. And of all the whales, American Bitcoin whales are the most active. According to Arcane Research, since the beginning of January, about 43% of Bitcoin transactions have been made by traders from the United States.
On the hourly chart, BTC/USD continues to trade within the downtrend, but at the same time it is above the 42000 level. You can also see the formation of a double top on the chart.
At the time of publication, the BTC/USD pair has managed to rise to the area of 42440. This allowed it to rise above the resistance level of 42400 and above the 100 hourly moving average. The current movement has also allowed the price of Bitcoin to form an uptrend line that provides support around 42000. If the bulls keep Bitcoin above 42400, we will see an attempt to break above 42500 in the coming hours. The next key resistance lies near the level of 43000.
If the bulls fail to keep the price above 42000, we will see a new decline to the area of 41600. Further, the BTC/USD pair may drop to the 41200 area. A downward break could provoke another serious decline.