BTC temporarily dipped below the $46K level on Monday after soaring to a new all-time high of $49,700 in the previous session.
The intense correction that drove the price as low as $45,850 points to a spike in profit-taking sentiment among daytraders. However, bulls quickly stepped in and retraced the top cryptocurrency’s move upward to reclaim $48K.
This rebound showed bitcoin’s resilience against bears that are attempting to break the BTC price below crucial support levels.
BTC/USD Chart By TradingView
The uptick in the BTC/USD exchange rate came as big money investors aggressively bought every dip while weak hands sold off their holdings to secure short-term profits.
According to one pseudonymous analyst on Twitter, the number of newly-created and active BTC addresses dropped by 11.5% and 12%, respectively in the last 24 hours. Simultaneously, wallets holding more than 1000 coins rose by 0.1% over the same period.
The transfer from BTC from small traders to big-money investors who are more likely to “HODL” coins for at least six months will likely provide tailwind to propel BTC toward $50K.
Now Is the Time to Buy Bitcoin
According to several analysts, there are enough favorable fundamentals to trigger another leg up for BTC in the near term. Ki-Young Ju, CEO of CryptoQuant, is advising investors that now is the time to buy more BTC, as on-chain indicators show there are enough stablecoins in crypto exchanges to spark a fresh rally.
On the other hand, data from crypto analytics firm CryptoQuant indicates a sharp drop in the number of BTC units held by exchanges. The lack of adequate BTC balances in exchanges will likely provide a bullish tailwind to the market.
One analyst is betting that the BTC price will soon rise and encourages traders to refrain from selling just yet.
“Literally a sell-side liquidity crisis right in front of our eyes. Don’t sell Elon or Saylor your corn. At least wait and sell your corn to Apple when they inevitably buy at $200k+ next month,” trader xCeaser asserted.
ADA Could Soon Break Above $1
The Cardano (ADA) price started a strong rally in the past week and soared to a new lifetime high of $0.97 on Feb 12.
That inspired run means that ADA has accumulated 438% gains year to date as it looks ready to break above $1.00. The fourth largest crypto asset as per the current CoinMarketCap rankings was changing hands for $0.18 at the start of this year.
The Cardano project has been making headway in recent weeks, leading to surging ADA prices. On Feb 3, Input Output Hong Kong, the development firm behind Cardano, successfully applied the Goguen native token upgrade (Mary upgrade) to Cardano’s testnet.
The ADA price is also benefiting from the macro trends in the crypto space that is driving altcoin prices up. In particular, ETH has seen tremendous growth over the past few weeks.