The price of Bitcoin (BTC) has experienced a 1.85% decline in the past 24 hours and is currently trading 17% below its record high of $73,835 achieved on March 14.
Despite this decline, various factors suggest that Bitcoin traders are optimistic about a potential trend reversal leading to new highs. Technical analysis, whale activity, and on-chain data all point towards a positive outlook.
In terms of technical analysis, Bitcoin’s price has been hovering between $60,648 and $62,800 in the last 24 hours. On the monthly chart, the current price range is retesting a previous resistance level that coincided with previous all-time highs. This range now appears to be acting as support for BTC, as it remained unaffected by last month’s halving sell-off.
Notably, this pattern has occurred only twice before, in 2017 and 2020, both times resulting in Bitcoin experiencing a parabolic uptrend and reaching new record highs.
Whale activity also supports the potential upside for Bitcoin. Despite the recent market drawdown, large Bitcoin investors have taken advantage of the price dip and accumulated more BTC. Addresses holding more than 1,000 BTC have made significant accumulation moves, indicating confidence in the cryptocurrency despite the price drop.
Furthermore, data from CryptoQuant reveals a decline in BTC balance on exchanges, reaching a five-year low of 1.927 million BTC in the last 90 days. This decrease suggests that investors are withdrawing their tokens into self-custody wallets, indicating a lack of intention to sell in anticipation of a future price increase.
Overall, these indicators point towards a positive sentiment among Bitcoin traders and investors. However, it’s important to note that investing and trading in cryptocurrencies carry risks, and individuals should conduct their own research before making any decisions.