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  • Bitcoin whales are on a buying spree as the price sets for an ultimate upswing to $40,000.
  • BTC must close the day above the pivotal $34,000 level to sustain gains eyeing the all-time high at $34,810.

Bitcoin has, from the beginning of this week, made a remarkable recovery from the recent 20% downswing to $27,735. The bellwether cryptocurrency teeters at $33,884 amid the struggle to resume the uptrend owing to the overhead pressure at $34,000.

Bitcoin’s on-chain metrics scream bullish

All ardent Bitcoin and cryptocurrency enthusiasts are aware of the talk regarding institutional investors adopting Bitcoin. Some believe that these high-volume investors’ buying pressure is contributing massively to the rally that saw BTC hit a new all-time of $34,810.

Data by Santiment, a leading on-chain analysis platform, also shows that the number of whale addresses containing at least 1,000 BTC has surged incredibly to a new all-time high around 2,221. The notable increase in the number of whales in this bracket proposes that the buying pressure behind Bitcoin is increasing.

Therefore, it is likely that the flagship cryptocurrency will push upwards to another new all-time high, eyeing $40,000.

Bitcoin holder distribution chart

Bitcoin holder distribution chart

IntoTheBlock’s “Daily Active Addresses” model reveals that the newly created addresses recently hit a monthly high of approximately 617,000. As Bitcoin recovered from last week’s dip under $30,000, the number of unique addresses surged from nearly 445,500. At the time of writing, the addresses are holding above 600,000, hence the stability of BTC around $34,000.

Bitcoin daily new addresses chart

Bitcoin daily new addresses chart

Meanwhile, Bitcoin is pivotal at $34,000 at the time of writing. Closing the day above this critical level may pave the way for gains past the all-time high at $34,810, especially now that we have established that buying pressure is rising behind BTC.

Sideways trading action is likely to take precedence in the coming sessions due to the Relative Strength Index leveling at 64. All the three moving averages, the 50 Simple Moving Average, the 100 SMA, and 200 SMA, are beneath the price on the 4-hour chart, somehow hinting at a more muscular bullish camp.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

The bullish outlook will be invalidated if Bitcoin closed the day under $34,000. Moreover, if selling pressure intensifies and Bitcoin stretches under $32,000, the price is likely to revisit the next anchor at $30,000 (50 SMA). If push comes to shove, losses will force Bitcoin to retest the recent support at $28,000.