The central theses
- Facebook didn’t report that Bitcoin was added to its balance sheet during its quarterly earnings call this week.
- However, on-chain metrics show that other “whale” investors continue to accumulate BTC at every opportunity.
- Bitcoin must close critically above the resistance line of $ 54,400 to $ 55,960 for the uptrend to resume.
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The crypto community may be disappointed with the news that Facebook doesn’t own Bitcoin, but whales have been on a buying frenzy in the past two weeks, buying over 60,000 BTC.
Facebook rumors disappoint investors
Emotions in the crypto market were high before Facebook’s earnings report for the first quarter of 2021 Rumors put into circulation The social media giant added Bitcoin to its balance sheet.
Some of the best-known industry experts took the bait and spread the news to thousands of followers. April 27th Atlanta Digital Currency Fund’s CIO Alistair Milne tweeted, “Rumor: Facebook will announce they have Bitcoin on their books when they publish their quarterly results after trading closes tomorrow.”
When Facebook didn’t announce a purchase, Milne argued that it didn’t start the rumor. H.We showed that he receive an email from UK-based wealth management firm Lansdowne Partners apparently confirming rumors of Facebook’s Bitcoin purchase.
Ultimately, Facebook didn’t mention Bitcoin or any other cryptocurrency Call for prizes despite the assembly speculation.
Compared to the previous year, an increase in sales of 48% was recorded. Facebook attributed the increase in sales to increases in ad rates and the number of ads on the site.
Bitcoin whales are piling up
While Facebook hasn’t shown any interest in Bitcoin yet, other high net worth individuals have been on a buying spree.
According to behavior analysis platform Santiment, whales of 10,000 BTC or more have added more than 60,000 coins to their portfolio since peaking nearly $ 65,000 on April 14.
“Bitcoin whale addresses (at 10,000 + BTC) are getting richer and richer as the price range increases, especially after the all-time high two weeks ago,” wrote Santiment. “A total of around 90,000 BTC ($ 4.92 billion) have been added to these addresses since April 5th.”
As buying pressure mounts, the IOMAP (IntoTheBlock In / Out of the Money Around Price) model shows that Bitcoin is under a massive supply wall. Around 1.80 million addresses previously purchased more than 880,000 BTC between $ 54,400 and $ 55,960. A further increase in price can therefore prove difficult.
Only a daily candlestick just above this barrier could Bitcoin resume its uptrend and march towards higher heights. However, rejecting the $ 54,400-55,960 resistance would likely result in a downturn to $ 50,000 with no support in between.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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