As an experienced analyst, I believe that despite the recent 1.85% drop in Bitcoin (BTC) price and its current position 17% below the all-time high, there are strong indicators suggesting a potential trend reversal toward new record highs.
The price of Bitcoin (BTC) has decreased by 1.85% in the past 24 hours, and it now sits 17% lower than its peak value of $73,835, which was attained on March 14th.
As an analyst, I’ve observed some interesting trends in Bitcoin’s market despite its recent performance. The technical setup, with key resistance levels being tested, suggests that some traders are positioning for a potential trend reversal. Furthermore, whale transactions and on-chain data indicate increased buyer interest, which could be a sign of confidence in the cryptocurrency reaching new highs once again.
Bitcoin price retests key support areas
Based on the data from CryptoMoon Markets Pro and TradingView, Bitcoin’s value has been fluctuating between $60,648 and $62,800 during the past 24 hours.
According to well-known analyst Rekt Capital’s assessment of Bitcoin’s monthly price chart, the present price range is currently being tested – a zone that previously functioned as a resistance level whenever Bitcoin reached its past record-breaking prices.
Based on Rekt Capital’s analysis, this region has been serving as a source of support for Bitcoin since the price dip following last month’s halving event didn’t fall beneath this level.
“On the monthly timeframe, Bitcoin is still retesting the old All Time High major resistance area (red) as new support (green).”
My colleague, Analyst Mustache, similarly noted that the Bitcoin-to-USD exchange rate was hovering around a price point not far from its prior record high, as depicted in his presented three-day chart.
As a crypto investor, I’ve observed that Bitcoin reached new all-time highs only twice in the past, specifically in the years 2017 and 2020. Previously attained peaks served as strong foundations for Bitcoin’s price surge, leading to parabolic uptrends where the coin touched even greater record heights.
In a previous post on April 25th, Moustache expressed his belief that Bitcoin would continue to rise following its retest of a particular level, as depicted in another discussion on the monthly chart.
“After reclaiming the line in 2012, 2016 and 2020, Bitcoin was just getting started. This will go much higher.”
Whale accumulation backs Bitcoin’s potential upside
In response to recent market declines, large-bitcoin investors, referred to as “whales,” seized the opportunity to purchase more Bitcoin when its price dipped into a favorable buying range, as reported by market analysis firm Santiment.
An analytics company observed that large Bitcoin holders with over 1,000 coins have recently made purchases during the previous day, as the cryptocurrency fluctuated between the prices of $61,000 and $64,000.
In a May 9 post on the X social platform, Santiment said,
“Wallets with 1K-10K $BTC have collectively accumulated ~$941M worth of coins, rebounding to their highest holding level in 2 weeks. ”
As a large Bitcoin investor, I’ve noticed some reassuring signals despite the recent dip in price down to $62,000, according to the latest data from an on-chain provider.
In simpler terms, this trend indicates that these investors remain optimistic about the market’s direction.
Declining Bitcoin balance on exchanges
According to data from cryptocurrency metrics analysis firm CryptoQuant, the amount of Bitcoin (BTC) held on exchanges has decreased by 6.54% over the past three months, reaching a five-year minimum of approximately 1.927 million BTC.
As an analyst, I would interpret a decrease in Bitcoin (BTC) balances on exchanges as a sign that investors are transferring their tokens into personal wallets for safekeeping. This action could imply that these investors do not plan to sell their BTC in the near term, suggesting they hold a bullish outlook and anticipate a price rise in the future.
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2024-05-09 21:07