On the chart, we observe a robust upward trend, characterized by a series of higher highs and higher lows, indicating prevailing bullish sentiment in the leading up to the purchase. The 50-day moving average (MA) is positioned below the 200-day MA, and both are sloping upward, signaling sustained buying interest and a positive trend over the medium to long term.
The momentous $25 million transaction is visible as a sharp upward price movement, breaking past the $38.5K resistance — a level that, prior to this event, had acted as a significant barrier to price advancement. This breakthrough is particularly noteworthy as it has occurred with high volume, adding credibility to the breakout and suggesting that there may be further upside potential.
When such a large order hits, it can trigger a cascade of automated buy orders, such as stop-loss orders converting to market buys, and can activate trading algorithms that interpret the volume and price change as buy signals. This often results in a rapid and sharp increase in price, as evidenced in the provided chart.
The Relative Strength Index (RSI), a momentum oscillator, also reflects the increase in buying momentum. Prior to the transaction, the RSI was already trending upward, hinting at increasing bullish momentum. Post-purchase, we would expect the RSI to venture into overbought territory, which can sometimes signal a temporary pullback or consolidation phase as the market digests the sudden move.
After such a significant purchase, traders and analysts will be closely monitoring the price action for signs of consolidation or continuation. If the price manages to hold above the $38.5K level and establish it as a new support, it could reinforce buyer confidence and invite further investment into Bitcoin.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
