Bitcoin price dropped today from a high of $33,600 to a low of $28,130 within a few hours. However, the bulls managed to buy the dip and push it back up to $31,100 currently. They defended a critical support level on the daily chart which is the 12-EMA and are now looking for the continuation of the uptrend.
Ethereum has been outperforming Bitcoin for the past few days, but Bitcoin’s dominance remains at 69% after the recovery. This indicates that the alt season might still need to wait longer.
Bitcoin Price Analysis: Key factors of this rally
Although technical analysis can be extremely useful, it’s hard to really determine where Bitcoin is facing resistance to the upside. However, the most important support levels are the 12-EMA at $28,700 and the 26-EMA at $25,610.
As long as the 26-EMA holds, Bitcoin will remain in an uptrend. But what about the upside, what is the next resistance point for BTC price? Of course, the all-time high at $34,778 is next, but what happens then?
The most surprising metric is the holder’s distribution chart which shows that the number of large holders with 1,000 to 10,000 coins ($32,000,000 to $320,000,000) has increased by 64 in the past week.
Additionally, the number of whales holding between 10,000 and 100,000 coins ($320,000,000 and $3,200,000,000) increased by 3 since January 1 despite Bitcoin’s price climbing from $28,600 towards $34,778. This indicates that whales expect the price of BTC to continue rising and are willing to hold extremely large positions.
It’s also important to note that the number of Bitcoin inside exchanges remains quite low. On October 2019, around 6.5% of Bitcoin’s total circulating supply was held by exchanges. This number is only around 4% today and has been flat since September 2020.
This is again a notable indication that investors are not willing to sell their Bitcoin and are holding them inside their own personal wallets.