As a researcher with experience in cryptocurrency analysis, I believe Bitcoin’s recent price action is a normal correction within a larger bull market. The strong support levels identified by on-chain data at around $70,180 and $70,600 add credence to this belief.
After a notable surge of over 25% since reaching its lowest point in May 2024, Bitcoin is currently experiencing a period of relaxation. Despite this dip, certain market observers remain optimistic and anticipate further price increases in upcoming trading periods.
Bitcoin Finds Strong Support Between $70,180 and $70,600
As a researcher delving into the intricacies of cryptocurrency markets, I’ve come across an intriguing perspective in a recent post. One particular analyst is convinced that Bitcoin boasts robust support levels around $70,180 and $70,600. The rationale behind this belief lies in on-chain data. Specifically, more than 450,000 addresses collectively own over 273,000 Bitcoins that were purchased within this price range.
Due to the high concentration of Bitcoin (BTC) holdings in this area, this level serves as a robust support for the coin. Should this support be breached, sellers would have to put in significant effort and sell a larger quantity of BTC to surpass it.
As a researcher studying the Bitcoin market, I’ve observed that Glassnode has reported a cooling trend following significant selling pressure. Previously, Bitcoin had surged to reach a peak of $73,800 in March 2024. However, prices subsequently dropped as low as $56,500 this month. Although prices have rebounded since then, bulls have yet to push beyond their all-time highs.
As a crypto investor, I’ve noticed that the flow of new funds into the market has been relatively steady as per Glassnode’s analysis. However, the level of market volatility has dropped significantly in recent times. But, it’s important to keep in mind that once the price of Bitcoin surpasses $72,000, there’s a strong possibility that volatility could spike up again.
BTC Retraces: Will Bulls Break $72,000?
The focus is intently fixed on whether Bitcoin’s bulls can recover from the ongoing correction. In a recent post on X, another analyst reassured holders that they shouldn’t be concerned about this pullback, and that the bulls’ inability to confirm the May 20th price surge was not cause for alarm.
The analyst is certain that pullbacks are a normal occurrence in a thriving bull market. The latest 23% decline serves as an illustration of this pattern.
As an analyst, I’ve observed that each correction in the price trend has occurred at a higher level than the last. Consequently, the upcoming local low is expected to surpass the previous one, possibly peaking near $80,000.
As a crypto investor, I’ve observed that Bitcoin (BTC) has presented a significant resistance level at around $72,000 so far. Despite some strong pushes from the bulls during early April, they haven’t managed to break through this line yet.
From a technical standpoint as a crypto investor, the current reaction level carries significant importance. Should Bitcoin experience a breakout at this point, it would heighten the likelihood of prices touching the resistance level of $73,800 once more or pushing beyond it.
Moving forward, the increase in investments into Bitcoin ETFs on the spot market, combined with positive market sentiment, could lead to heightened demand. Consequently, if this trend continues, Bitcoin bulls may regain momentum and surmount the nearby resistance, validating the May 20th price bar.
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2024-05-22 21:05