Bitcoin has come out of the weekend with less than favorable performance but it has not been all bad for the digital asset either. After falling below $20,000, it tended low towards the end of last week. However, the cryptocurrency has been able to hold the $19,000 level despite efforts from the bears to pull it down. This has been due to a number of factors but most importantly is the support that has been forming at this level.
Support At $19,000
After struggling to hold above $19,000 for most of last week, the digital asset had subsequently found its footing above $19,000. This price point is important for bitcoin given that it was where its previous cycle peak had occurred. Although it had actually broken below this point multiple times this year already. However, with the recovery above 19,000 ounce, the bulls look to have found their spot and the support at this level has been growing.
It is propelled forward by bitcoin investors who are taking this as a cue to buy the digital asset for cheap. Mostly, whales have been the most active during this time even amid the extremely low investor sentiment. These whales who are purchasing their tokens on spot continue to fill their bags.
Data shows that these wallets that hold more than 1,000 BTC on their balances have added 140,000 BTC per month, which has brought their total holdings to 8.69 million BTC. This means that these bitcoin whales now hold 45.6% of the total circulating supply.
BTC continues recovery trend | Source: BTCUSD on TradingView.com
The whales are not the only ones buying up bitcoin. Smaller holders with less than 1 BTC have also ramped up their activities by buying at these prices. They have added to their balances at a rate of 36,750 BTC per month, bringing their total holdings to 1.12 million BTC, or 0.2% of the circulating supply.
Will Bitcoin Continue To Hold?
As of the early hours of Monday, bitcoin had begun another recovery trend that has put the price above $19,300. Although not a significant recovery by any stretch, it has put the digital asset on a green start to the new week.
Nevertheless, the digital asset continues to trade below important technical levels such as the 50-day movie average. Due to this, the chances of bitcoin holding the recovery trend through the rest of the week remain slim as there is not enough demand to offset the coins being dumped by the sellers.
This means that while the price will likely recover above $19,500, there may be another downtrend before the day is over. This will put the mounting support at the $19,000 level to the test. But if bitcoin can continue to hold and the market sees a significant spike in demand, the next major resistance awaits the cryptocurrency at $20,500.
Featured image from FortuneBuilders, chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…