Having made a bad entrance to 2022, Bitcoin has finally been giving some bullish signals in the last two days, thanks to the massive accumulation of miners.

Miners, who show full confidence in Bitcoin at the level of 40 thousand dollars, make Bitcoin purchases according to the table in Glassnode. According to the latest data, miners are accumulating at the fastest rate since the May 2021 market correction.

BTC miner next

Five days in a row accumulated as Bitcoin miners added more than 6,100 BTC to themselves. Also, mining giant Bitfarms bought 1000 Bitcoins during the last price correction, bringing their total holdings to 4,300 levels.

Is $40,000 the New Bottom for Bitcoin?

Jurrien Timmer, director of Global Macro at Fidelity, offered an interesting analysis. Timmer wrote that amid the Fed stance, the crypto market followed the stock market, which came under downward pressure. However, he added that Bitcoin has now found a crucial support area at the $40,000 levels. Timmer analyzed this on the basis of the S-curve model.

   “The $30,000 level in 2021 provided support based on my demand pattern (S-curve model). The same level appears to have once again provided key support at $40,000. It is usually a moving target that provides a fundamental anchor for the price.”

BTC supply demand models

In addition, the Fidelity executive also compared Bitcoin to another traditional store of value, Gold. He stated that the Bitcoin/Gold ratio has fallen into the breakout zone since last year. This indicates that Bitcoin was moderately oversold at $40,000.

BTC Gold-1

Therefore, the Fidelity director stated that both technical and fundamental support of Bitcoin is at $ 40 thousand.

   "Ultimately, these charts tell me that Bitcoin should have both technical and fundamental support at $40,000. That doesn't mean it can't go any lower, but $40,000 looks like the new $30,000."

Even if Bitcoin drops to this level, there is likely to be a faster turnaround. Fed CPI Inflation data and this week's close will be crucial in determining where we are headed.