Bitcoin (BTC) has experienced a 1.85% decrease in price over the past 24 hours, currently trading 17% lower than its all-time high of $73,835 reached on March 14.
Despite this decline, various factors such as the technical setup, whale activity, and on-chain data suggest that Bitcoin traders are optimistic about a potential trend reversal leading to new highs.
Bitcoin’s price has been fluctuating between $60,648 and $62,800 over the past day, as indicated by data from Cointelegraph Markets Pro and TradingView. The monthly chart reveals that the current price range is retesting a previous resistance level that was encountered during Bitcoin’s previous all-time highs. Analyst Rekt Capital notes that this range is now acting as support for BTC since the price did not drop below it during last month’s halving sell-off.
Another analyst, Moustache, has made similar observations, sharing a BTC/USD three-day chart that shows the price trading close to the previous all-time high. This occurrence has only happened twice before, in 2017 and 2020, both times resulting in Bitcoin’s price going on a parabolic uptrend and hitting new record highs.
Moustache also commented on a similar setup seen on the monthly chart, stating that BTC was likely to increase after retesting the line.
Bitcoin whales have taken advantage of the recent market downturn and bought more BTC during the dips. Market intelligence firm Santiment reports that addresses holding more than 1,000 BTC have made accumulation moves in the past 24 hours while BTC remained within the tight range of $61,000 to $64,000. This suggests that large Bitcoin investors are confident in the cryptocurrency’s future, despite the price drop to $62,000.
Furthermore, data from CryptoQuant reveals that BTC balance on exchanges has reached a five-year low of 1.927 million BTC, indicating that investors are withdrawing their tokens into self-custody wallets. This suggests that they have no intention of selling in anticipation of a future price increase.
It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment or trading decisions.