Bitcoin (BTC) has experienced a 1.85% decrease in price over the past 24 hours and is currently trading 17% below its all-time high of $73,835, which was reached on March 14.
Despite this decline, various factors such as the technical setup, whale activity, and on-chain data indicate that Bitcoin traders believe a trend reversal towards new highs could be on the horizon.
Bitcoin’s price has been ranging between $60,648 and $62,800 in the past 24 hours, as observed from data provided by Cointelegraph Markets Pro and TradingView. Looking at the monthly chart, it is evident that the current price range is retesting a key support area that previously acted as resistance during previous all-time highs. This support level has held firm since last month’s halving sell-off, indicating its strength.
Notably, analysts such as Rekt Capital and Moustache have made similar observations. Rekt Capital highlights that this support area has now become a crucial level for Bitcoin, while Moustache shares a three-day chart showing that the price is trading close to the previous all-time high. This type of price action has only occurred twice before, in 2017 and 2020, both of which were followed by parabolic uptrends and new record highs.
Additionally, Bitcoin whales have taken advantage of the recent market drawdown by accumulating more BTC during the price dips. According to market intelligence firm Santiment, addresses holding more than 1,000 BTC have been making accumulation moves in the past 24 hours. This indicates their confidence in the market despite the price drop.
Furthermore, data from CryptoQuant reveals that the balance of BTC on exchanges has reached a five-year low of 1.927 million BTC, indicating a decreasing trend over the past 90 days. This suggests that investors may be withdrawing their tokens into self-custody wallets, signaling their intention to hold onto their BTC and potentially anticipating a future price increase.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading always involve risks, and readers should conduct their own research before making any decisions.