As Bulls take charge, BTC Price prepares for another sprint towards $42K

The chances of an imminent breakout to a new price record are becoming cautiously bullish among Bitcoin enthusiasts. The king coin shows signs of kick-starting a new rally at $42K toward its previous peak after breaking through the $40K resistance earlier today.

The higher rise comes after BTC spent approximately three weeks under $38K in a sideways trading period that saw the short-term price cycle of the coin lose momentum. Positive market action today has seen the bulls reach $40K, which is one of the greatest challenges on the road to a new all-time high.

BTCUSD is up nearly 7 percent to trade at $40,669 at the time of writing, as per CoinMarketCap reports. According to on-chain analysts at Santiment, the growing number of whale addresses is one of the leading indicators that a breakout is close for BTC.

The analysts noted that during their recent consolidation process, whales kept accumulating BTC, even as the mid-tier traders started to take profits off the table. The latest price uptick coincides with strong spot bidding on the Coinbase exchange, which indicates that the flagship cryptocurrency is being actively purchased by high-net-worth investors.

The BTC Correction of the Market may be over

Crypto investors will now hope that, in the near future, the bulls will be able to retain the current momentum and keep the BTC price above the levels of $38K and $40k.

As whales accumulate to conclude that BTC will soon be prepared for a major uptrend, one analyst points to the bullish on-chain data and massive outflows from Coinbase.

“There is a coincidence that we have been seeing huge amounts of $BTC being withdrawn from coinbase. The first market correction of the 2021 bull market is now finished,”

CryptoGodJohn tweeted

A similarly bullish outlook on the BTC price cycle was expressed by another valued crypto trader, citing a favorable technical market structure. Scott Melker clarified that a huge bull flag structure that could propel the BTC price to $63K in the near future is currently being broken out by the world’s leading cryptocurrency.

For Bitcoin, what next?

BTC is back in a bullish zone now, and this time around, in the midst of a less overheated derivatives market, it has soared above $40k. The digital asset theoretically began to break out of the bull flag two days ago when, for the first time in weeks, it overcame the big hurdle at $38K.

The King Coin looks better than the last $40K hack. Due to the calmer market sentiment and the less crowded BTC futures market prevailing at the moment, the price would probably stabilize above this level.

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