Bitcoin managed to break through the resistance level 38,610.88 on Wednesday, marked with a red dotted line. The price rose above the psychological mark of $40,000 per coin. The news is still encouraging, although it is difficult to call them strong enough to create momentum. But perhaps you just need to wait a little longer.
Meanwhile, the number of Bitcoin addresses accumulating coins is growing every day this week. Now their number has reached a new historical maximum and is 545,115 units.
On Tuesday, May 25th, network data provider Santiment also reported an increase in the number of bitcoin whale addresses containing more than 1,000 bitcoins in an account. Over the past week, about 34 such addresses, belonging to major players, have been added to the network. This marks a record accumulation period in the past four months.
Experts point out that, on the other hand, a positive indicator is that deposits of bitcoin whales on exchanges have recently declined. At the same time, the supply of stablecoins on exchanges relative to the main cryptocurrency has increased dramatically. This creates the preconditions for high consumer demand in the short term.
In the meantime, hedge funds and other institutional investors are wasting no time in buying bitcoin, probably taking advantage of the situation while it is still not very expensive.
Also on Tuesday, Cathie Wood of Ark Invest announced that her funds had acquired $20 million worth of bitcoin. Wood remains a supporter of bitcoin, highlighting her firm belief in the positive future of the main cryptocurrency during the recent market crash. Wood claims that in the future, the price of the main cryptocurrency will reach $500,000.
As for the energy intensity of bitcoin mining, some hope is given by the mining council, which Tesla joined over the weekend. Elon Musk called his creation potentially promising. But whether miners will really look for sources of renewable energy to mine digital coins, time will tell.
Some experts point out that there are many difficulties in this matter since now the cheap energy of fossil coal is more suitable for crypto mining, moreover, companies in some places offer tax incentives for its use.
However, Shark Tank star Kevin O'Leary recently revealed that the flow of institutional money will start returning to bitcoin as soon as miners solve the renewable energy problem.
In the meantime, if you look closely at the 4-hour chart of bitcoin, you will notice the formation of an inverted head and shoulders reversal pattern. It is difficult to say whether this is really it, since the downward trend on which it formed is crooked. But the hint is accepted.
In any case, the closest target for BTC/USD growth is the level of 41,980.24. If it is broken and the price consolidates higher, it will be possible to talk about a larger-scale recovery of both bitcoin and the cryptocurrency market as a whole.
