The price of Bitcoin (BTC) has fallen by 6.5% in the past week and is currently trading at 10% below its all-time high of $73,835, which was reached on March 14.
Despite this decline, analysts believe that Bitcoin’s technical setup, positive investor interest, and onchain data suggest that a trend reversal towards a significant uptrend could be on the horizon.
Bitcoin’s price has been fluctuating between $58,000 and $72,000 for over ten weeks, as shown in data from Cointelegraph Markets Pro and TradingView. Analysts like Rekt Capital and Moustache have noted that the current price range is retesting a zone that previously acted as strong resistance when Bitcoin hit its previous all-time highs.
Moustache, using the Elliot Wave Oscillator Methodology, has pointed out that Bitcoin’s price has retested a specific line only three times in the past, leading to parabolic uptrends and new record highs.
In response to the recent market downturn, Bitcoin investors have been taking advantage of the lower prices to buy more BTC. Market intelligence firm Santiment noted a significant increase in crowd buying interest after Bitcoin dropped below $67,000 on June 13.
Furthermore, data from Alternative.me indicates that the Crypto Fear and Greed Index is currently in the “greed” zone, suggesting a positive sentiment among investors.
On the onchain side, CryptoQuant data shows that the balance of BTC on exchanges has reached a five-year low, indicating that investors are withdrawing their tokens into self-custody wallets in anticipation of a future price increase.
It’s important to note that this article does not provide investment advice, and readers are encouraged to conduct their own research before making any decisions.