The price of Bitcoin (BTC) has experienced a 6.5% decline over the past week and is currently trading 10% below its all-time high of $73,835, which was reached on March 14.
Despite this recent performance, Bitcoin analysts are optimistic about a potential trend reversal into a strong upward trajectory, citing positive technical indicators, investor interest, and onchain data.
Bitcoin’s price has been fluctuating between $58,000 and $72,000 for over ten weeks, showing resilience above key support levels. Analysts like Rekt Capital and Moustache have noted that the current price range is retesting a zone that previously acted as a resistance level during previous all-time highs, but is now supporting BTC amidst the ongoing sell-off.
Moustache’s analysis using the BTC Golden Bottom with Adaptive Moving Average and Relative Strength Index of Resulted EVO indicators suggests that Bitcoin’s price has historically experienced parabolic uptrends after retesting certain key levels, indicating potential for a bullish outlook in the near future.
Market intelligence firm Santiment has observed a spike in crowd buying interest in BTC following the recent market drawdown, with retail investors showing confidence in the cryptocurrency’s potential for quick recovery. This is reflected in the Crypto Fear and Greed Index, which has entered the “greed” zone at 74, signaling positive sentiment among investors.
Furthermore, data from CryptoQuant indicates that BTC balances on exchanges have reached a five-year low, suggesting that investors are moving their tokens into self-custody wallets in anticipation of a future price increase.
It is important to note that this article does not provide investment advice, and readers are encouraged to conduct their own research before making any investment decisions.