Bitcoin Experiences Price Dip, But Indicators and Analysts Suggest Possible Trend Reversal
Summary:
Bitcoin's price has experienced a 1.85% decrease over the past 24 hours, trading 17% lower than its all-time high of $73,835. Despite this, indicators such as technical setup, whale activity, and on-chain data suggest a possible trend reversal. Analysts note the current trading range is retesting previoud all-time highs, which now serves as support. Large Bitcoin investors have maintained their holdings, showing confidence in the cryptocurrency's potential rise. Furthermore, decreasing Bitcoin balances on exchanges could indicate a withdrawing momentum, as investors anticipate further increase in value.
In the past day, the price of Bitcoin (BTC) has dipped down 1.85%, trading 17% lower than its highest ever recorded value of $73,835, reached on March 14. However, despite this decline, various signals such as on-chain data, whale volume, and the technical layout suggest that Bitcoin traders predict a trend reversal which would result in new highs. Over the last 24 hours, Bitcoin's price has fluctuated between $60,648 and $62,800, according to data from Cointelegraph Markets Pro and TradingView.
Examining Bitcoin's monthly chart, it appears that the current trading range is undergoing a re-test of the area which previously acted as a hurdle to the cryptocurrency's further growth, as noted by well-known analyst Rekt Capital. Rekt Capital asserts that this zone is now functioning as Bitcoin's support, considering the previous month's halving sell-off did not cause a plunge below this level.
Rekt Capital's fellow analyst, Moustache, detected comparable patterns. He noted that Bitcoin's price is transacting close to its previous peak on a three-day chart. Such patterns were only found in 2017 and 2020; both times Bitcoin's price discovered support at previous highs, which was following by a steep uptrend that pushed the cryptocurrency to new peaks.
Moustache also mentioned a resembling trend on Bitcoin's monthly chart, opining that Bitcoin would escalate after undergoing retests of this line. He reasoned that this line was overcome in 2012, 2016, and 2020, and each time Bitcoin was on the verge of soaring higher.
The upward potential of Bitcoin is further supported by the fact that Bitcoin whales have capitalized on the market's decline during the last days to buy more BTC in the dips. This maneuver placed them into a prime position for purchasing, according to market intelligence firm Santiment. The platform also noted that Bitcoin wallets with 1K-10K $BTC have collectively accumulated coins worth ~$941M, their highest in two weeks. As Bitcoin hovered between $61,000 and $64,000, these whales showed signs of confidence despite the Bitcoin price drop to $62.000, indicating a bullish sentiment among large investors.
Other encouraging signs for Bitcoin include data from CryptoQuant, a firm providing on-chain metrics analytics, suggesting that the BTC balance on exchanges fell to a five-year low after declining 6.54% over the last 90 days. This could indicate that investors are withdrawing their tokens into self-custody wallets, suggesting they are not planning to sell in anticipation of a future rise in price.
Published At
5/9/2024 8:45:34 PM
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