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- Bitcoin has seen wild price action over the past couple of days, with the cryptocurrency posting its most extensive ever 1-day candle yesterday following news of Tesla’s BTC purchase
- This candle, which spanned from the upper-$30,000 region all the way to highs of $47,000, has yet to be reversed, as bulls have maintained their control over the market
- Where the entire crypto market trends next will undoubtedly depend on BTC, as altcoins have been closely tracking its general trend
- If the crypto slides lower and fails to extend its momentum, altcoins may see intense selloffs that drive them significantly lower
- One ongoing event that is bullish for BTC is that there appears to be strong TWAP demand for the crypto
- This indicates that funds and other large players are accumulating
Bitcoin and the entire crypto market have consolidated today following a massive push higher that came about yesterday morning on the heels of news regarding Tesla’s $1.5b BTC acquisition.
Naturally, this news created a buying frenzy that has yet to subside, with traders and retail investors alike rushing to gain heightened exposure to the benchmark digital asset.
One positive sign that may indicate growth is imminent is the presence of large TWAP activity, which is a sign that large buyers are adding to their BTC stacks.
Bitcoin Stable Following Massive Tesla-Induced Rally
At the time of writing, Bitcoin is trading flat around its current price of $46,550. This is around where it has been trading throughout the past few days.
Each selloff seen over the past day has been rapidly absorbed, which is a sign that demand is mounting.
The crypto has yet to eat into its recent gains and is still trading around where the daily candle closed yesterday.
Data Shows Large Players are TWAPing BTC
Data seems to suggest that large buyers are using TWAP to acquire BTC, which may be why the benchmark crypto has yet to see any sustained selloffs.
One analyst spoke about this in a recent tweet, pointing to a chart showing the aggressive buying occurring on each dip.
“I suppose lots of bigger players using TWAP and as more institutions buy BTC or larger funds buy BTC… I expect TWAP to work better over time (albeit front running becomes a problem –> but still usable)”
Image Courtesy of Cyrii_MM. Source: BTCUSD on TradingView.
If this trend persists, it could provide Bitcoin with a solid base of buying pressure to extend its uptrend.
Featured image from Unsplash. Charts from TradingView.
