3 Reasons Bitcoin Traders Say BTC Price Trend Reversal Is Overdue
Bitcoin (BTC) price is down 1.85% in the last 24 hours and is currently 17% below the March 14 high of $73,835.
Despite this performance, technical setups, whale activity and on-chain data suggest that Bitcoin traders believe a trend reversal to a news high may be underway.
Bitcoin price is retesting key support areas
Data from Cointelegraph Markets Pro and TradingView show Bitcoin prices fluctuating between $60,648 and $62,800 over the past 24 hours.
Bitcoin's monthly chart, as seen by renowned analyst Rect Capital, shows that the current price range is testing the area that served as resistance when BTC reached all-time highs before.
According to Rect Capital, this area is now acting as a support for BTC as last month's halved selloff did not keep the price below this range.
“On the monthly chart, Bitcoin is still testing the old All Time High major resistance area (red) as new support (green).”
Fellow analyst Mustache made a similar observation, sharing the three-day chart of BTC/USD, where the price is trading close to its previous all-time high.
According to Mustache, this has only happened twice in the past – in 2017 and 2020. In both cases, major price increases in the past supported the value of Bitcoin, after which the coin continued to rally in 2017 and 2020.
In another X post on April 25, Mustache commented on the same setup on the monthly chart, BTC is higher after retesting the line.
After retracing the line in 2012, 2016 and 2020, Bitcoin was just getting started. This will be much higher.”
Whale stocks support the upside of Bitcoin's potential
Reacting to the market's decline over the past few days, Bitcoin whales have taken advantage of entering a “major buying zone” to buy more BTC on dips, according to market data firm Sentiment.
The analyst firm said that addresses holding more than 1,000 BTC “have done some gathering activity in the last 24 hours” because BTC was tight between $61,000 and $64,000.
In a May 9 post on the X social platform, Sentiment said:
“Wallets with $1K-$10K BTC accumulated ~$941M worth of coins and rose to peak holdings in 2 weeks.”
This means that large Bitcoin investors are “showing signs of confidence despite the price drop to $62,000,” according to the on-chain data provider.
Overall, this is a positive sign as the accumulation shows continued sentiment among this set of investors.
Related: Bitcoin Price Buys at $61K as US Jobless Claims Hit 9-Month High
Decreasing Bitcoin balance on exchanges
According to data from ChainMetrics analytics firm CryptoQuant, BTC turnover has hit a five-year low of 1.927 million BTC after a 6.54% drop over the past 90 days.
Decreasing BTC balances on exchanges can simply mean investors withdraw their tokens to self-storage wallets, indicating no interest in selling in anticipation of future price increases.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
