Strong whale activity is helping to drive Bitcoin prices higher. BTCUSD is up nearly 2.86% on the week after some robust whale activity in the last 24 hours. The Twitter page of Whale Alert, a service which monitors and reports on large-scale cryptocurrency transactions, has indicated that a total of 1,850 BTC worth $17.53 million was moved into the Binance exchange from an unknown wallet. This event happened just as the various stablecoin treasuries minted hundreds of millions of dollars of USDT and BUSD within the same time frame.
Typically, BTCUSD prices tend to move a lot when there is this kind of whale activity. Demand for Bitcoin is also rising, as data from crypto data aggregator service Glassnode indicates that the number of BTC wallets holding at least 0.1BTC has hit record highs. This partly explains why Bitcoin prices continue to stay above the 9,000 mark since the bottom experienced by the US markets.
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Outlook for Bitcoin Prices
The weekly candle for BTCUSD has formed a hammer, which rests on the lower border of the ascending channel. If this candle ends the week as it is, it provides a bullish picture, with the potential to aim for the opposing channel’s border. However, this move will have to depend on Bitcoin prices blowing away the resistance levels at 9939.7, 10,290.44 and 10,465.78 (9 September 2019, 10 February and 1 June 2020 highs). 10,930.82 is where the upper border of this channel meets the previous highs of 19 August and 2 September 2019.
On the flip side, a drop in Bitcoin prices during the week that leads to a breakdown of the channel would allow BTCUSD aim for the 9100.31 price level, with 8874.49 and 8550.12 presenting themselves as possible support targets. 8000.90 remains a valid psychological support level, which could pave the way for 7420.72 if Bitcoin selling pressure overcomes that price level.