Bitcoin Sees Expected Rise Signal as Selling Pressure Subsides, According to Analysts
Bitcoin, the leading cryptocurrency, started the week off with a rise, surpassing $70,000 during the day. However, it was unable to sustain this level and fell to $69,000.
As Bitcoin has been experiencing a decline and consolidation since its all-time high (ATH) in March, cryptocurrency exchange Bitfinex has provided an explanation for the decline. Bitfinex analysts suggest that the significant drops in Bitcoin’s price since March are likely due to long-term BTC holders selling their holdings.
However, analysts also point out that on-chain data indicates that the downward trend in Bitcoin has come to a halt, with investors now accumulating BTC. In their report, they state, “Bitcoin and the broader crypto market have been in a consolidation phase for over two months since BTC reached a record price of over $73,000. The main reason for Bitcoin’s fall from ATH was profit-taking by long-term investors, but data shows that these investors have started accumulating BTC again for the first time since December 2023. This suggests that the correction phase in Bitcoin may be coming to an end. CryptoQuant data also reveals that the number of new Bitcoin and Ethereum deposit addresses increased last month, indicating an upward trend despite price stability.”
In addition to Bitfinex, crypto analysis firm Swissblock analysts have also evaluated Bitcoin’s movements and identified the $70,000 and $73,000 levels as important resistance levels that have limited the price of BTC. They suggest that short-term pullbacks from these levels can be seen as buying opportunities for Bitcoin, while the $67,000 level is seen as a reliable support level.
On-chain analysis firm CryptoQuant has also reported that 50% of the long-term Bitcoin supply remains inactive, with no movement or changes in tracked wallets. This suggests a strong long-term belief in Bitcoin, which could potentially lead to further price gains.
Please note that this article does not provide investment advice.
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