Key Takeaways:
- A Bitcoin whale moved 14,124 BTC to a Xapo cold wallet.
- Meanwhile, BTC prices struggle to break above $50,000 price level.
NEW DELHI (CoinChapter.com) — Bitcoin, the world’s largest cryptocurrency, fell sharply on Dec 5 following a lack of bullish tailwinds.
However, it seems Bitcoin investors are still planning to HODL, as blockchain tracker and analytics provider Whale Alert shared a giant transaction, wherein a whale transferred 14,124 BTC worth over $694 million at the time of transaction) to a cold wallet.
A cold wallet is a secure hardware wallet disconnected from the internet, making it difficult for hackers to compromise the stored addresses or private keys.
Bitcoin investors who plan to hold their crypto assets for the long haul use hardware wallets to protect their investment. Besides this particular whale transaction, the overall BTC balance on exchanges is also declining. Falling exchange balance is an indicator of hodling sentiment in investors.
Bitcoin prices fell sharply on Dec 5, almost four weeks after charting a new ATH. Lack of fresh bullish incentives probably led to the sell-off. Moreover, Weak hands (emotional or inexperienced traders) likely added to the selling sentiment as they offloaded their crypto assets to mitigate losses.
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Since Dec 5, Bitcoin’s price action has been weak as the world’s most prominent cryptocurrency struggles to break out of the $40,000-$50,000 price band. However, Glassnode reported that the number of addresses with more than 10,000 BTC reached 90, highlighting the continued investor interest in the OG crypto.
El Salvador’s President Nayib Bukele bought another 150 BTCs to continue the country’s trend of buying Bitcoin dips. The latest purchase brings the Central American country’s total to nearly 1,500 Bitcoins.
Bitcoin Price Charts
Bitcoin prices are struggling to stay above the $50,000 price mark on the daily charts. BTC opened Thursday at $50,540 before prices fell. Moreover, the world’s largest crypto is currently bearish on the short and medium-term time horizons, as its prices trade below the 50-day and 100-day MA lines.
Once Bitcoin moves above the $50,000 price level, it would challenge resistance at $52,618. Bulls need to move and consolidate above the $52,618 resistance to restart a BTC uptrend. However, the 100-day MA and 26-day EMA have formed a resistance confluence near $54,945.
As such, $54,945 resistance would likely cap any upside movement without strong bullish fundamentals. If BTC continues to trend downwards, prices could fall to $48,426 before recovering.
Further support for BTC comes from its 200-day MA trendline, near $46,771. Meanwhile, momentum oscillator MACD continues to be bearish for Bitcoin after charting a bearish crossover in early Nov. Bars on the MACD histogram are contracting, though very slowly. As such, the bearish momentum is likely to stay for a while.
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The MACD histogram plots the difference between the MACD line (difference between 12-Day and 26-Day) and its signal line (9-Day EMA of MACD).
The relative strength index for Bitcoin is clocking a neutral 33.39 on the daily charts. However, the RSI trendline is moving downwards towards oversold levels.
An oversold RSI indicates an asset is likely to reverse its current trends. Bulls would be hoping that the theory stays true for BTC.
At the time of writing, BTC was trading at $49,206, down 2.88% on the day.
