The price of Bitcoin is down 0.32% at $40,672.06 on mid-Tuesday trades.
Bitcoin surged on Monday, closing above the all-important $40,000 critical level, holding on to the uptrend line from January as demand from institutional investor climbs. Bears on early Monday were able to push Bitcoin to $38,850, a five-week low.
Analysts have identified three critical reasons for the comeback of Bitcoin. Rising institutional demand, spike in the number of whales in the Bitcoin network, and massive Bitcoin outflow across exchanges like Coinbase Pro. Coinbase Pro, one of the largest crypto exchanges, has witnessed significant changes in the volume of Bitcoin, a total of 30,000 in a single day this week. A spike in Bitcoin buying among whales and large wallet investors is considered a bullish sign for the asset’s price.
Bitcoin appears to be stabilizing after declining around 18% over the past two weeks. So far, the cryptocurrency is holding above the $37,000 level, similar to what happened in early March.
On the technical side, the RSI of Bitcoin stood at 44.01 and is currently trading above MA (5) but below MA (20) and MA (50). If the price breakouts further, BUY position can be taken with the following target and stop-loss: