Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
According to Bitcoin on-chain analysis firm, the “bulls have won” as Bitcoin price finds support as a result of strong whale cluster activity. Research from Whalemap indicates that the price of Bitcoin could be heading in a short-term reversal following a minor decline in price. In the past 48 hours, Bitcoin price has risen over 5% gaining to a healthy $10,755 USD across the world’s leading exchanges
Whale activity indicates a possible bullish trend
The whales, which have a massive influence on the markets movements, have been testing and pulling back and the current trend, with a nearly 5% incline, points towards the bullish activity. Large-scale investors holding their cryptocurrency are tending towards bullish sentiment, as indicated by the fact that the whales are anticipating Bitcoin price to become profitable in the short and medium-term.
As suggested by Whalemap, there are data points around $10,407 USD, $10,570 USD and $10,667 USD which very likely represent whale clusters. Looking at trends historically, there’s a high chance that these three levels will become the support levels. This is likely, provided the price of Bitcoin remains above $10,700 USD.
Feels like bulls have won. Many supports below at 10407 and 10570 and volume profile support at 10500. Should not be going below 10407 to stay bullish. pic.twitter.com/NJmPqyqp8P
— whalemap (@whale_map) September 25, 2020
Bitcoin strengthening with positive momentum
On-chain analyst Willy Woo offered a similar sentiment, highlighting that the strength of Bitcoin might lie in its inverse-correlation with the US dollar and traditional markets. This, as investors consider Bitcoin as an option to hedge against the declining US dollar, stands as an extremely beneficial chance for Bitcoin to see higher volumes of adoption. As Woo offered:
Bitcoin will decouple from traditional markets soon, but driven by its internal adoption s-curve (think startup style growth) rather than changes in perceptions as a hedging instrument by traditional investors.
Fundamentals of user adoption have already broken all time highs.
— Willy Woo (@woonomic) September 24, 2020