The value of Bitcoin returned to the $ 40 thousand mark after falling on Wednesday, when the cryptocurrency lost a third of its value and fell in price to $ 30 thousand. On Wednesday afternoon, Bitcoin fell in price by 30% per day. Thus its value more than halved from the April historical maximum ($ 64,854) and reached $ 30,000. But by the evening it returned to the mark of almost 40 thousand dollars. At night, the cryptocurrency briefly reached 35.5 thousand dollars, but this decline also won back.
The last time such a collapse occurred with Bitcoin was in March 2020. Then the price of the first cryptocurrency in two days fell by more than 50% – to 3.7 thousand dollars.
According to experts, at the moment, the next level that Bitcoin should overcome is $ 46,000. Which may become a chance for a new bullish growth. As of this writing, bullish signs are everywhere.
$ 46,000 is the previous support level, which can now act as resistance. If Bitcoin stays at this level, then in the coming weeks it will move to growth again. In this case, large players will again start buying assets from retail investors.
How did the events develop? Should we expect new growth in Bitcoin?
The collapse of quotations preceded by a record inflow of Bitcoins to the largest crypto exchanges since March 2020. It began on May 18, when almost 23 thousand digital coins were brought to trading platforms in just one hour. On May 18 and 19, it was the largest influx of Bitcoins into the Binance. Against the backdrop of the recent drop and negative news background, investors began to withdraw funds from funds based on bitcoin. So, in 48 hours, users transferred 38 thousand Bitcoins to the site’s accounts, which at that time amounted to $ 1.38 billion.
On the evening of May 19, when Bitcoin began to recover from the collapse, digital coins began to be withdrawn from the platforms. As a result, the largest outflow of digital coins was recorded in a year. Users of crypto-exchanges per day brought about 175 thousand Bitcoins to cold wallets for $ 7 billion at the exchange rate at that time.
The next day, it became known that during the fall in the price of Bitcoin to $ 30 thousand, large investors and funds began to buy it.
How to take such signals
Moving Bitcoin to exchanges indicates the intention of the holder to sell it. However, large transfers of digital coins require a comprehensive analysis. Even though we cannot speak with certainty about direction indication, we definitely understand that impulse movement should be expected.
A large-scale withdrawal of Bitcoin from exchanges to cold wallets should be taken as an indicator of the growth of long positions. Those who bought out Bitcoin at levels close to $ 30 thousand have far-reaching goals and are ready to hold positions for a long time.