Three Reasons for Delayed Reversal of Bitcoin Price

 

Three Reasons for Delayed Reversal of Bitcoin Price

Bitcoin Price :

Bitcoin price data strongly indicate that the current price range represents

an opportunity to "buy the drop."

Bitcoin is down 1.85% in the past 24 hours, reaching $62,195

and is currently trading 17% below its all-time high of $73,835 on March 14.

Demo :

Despite this negative performance, technical analysis, whale activity

and data on the chain suggest that bitcoin traders strongly believe there is

a reversal in the price trend towards new levels that could be under preparation.

Bitcoin Price Retests Key Support Areas

Data from Cointelegraph Markets Pro and TradingView shows the price of

bitcoin fluctuating between $60,648 and $62,800 in the past 24 hours.

On Bitcoin's monthly chart

the current price range appears to be testing an area that was operating

as resistance when Bitcoin reached its highest level

as noted by renowned analyst Rickett Capital.

Ricket Capital

• asserts that this area now acts as a subsidy for bitcoin

• as the divisional liquidation that occurred last month

• did not withdraw the price below this range.

According to Mostash, this scenario occurred only twice previously - in 2017

and 2020. Each time, old prices supported bitcoin's strong rise

launching into a rising trend and reaching new record highs.

Over the days

indications are that bitcoin may be on track to achieve new levels again.

Whale accumulations

support potential rising bitcoin

• In response to the market's decline over the past few days

• whales in the bitcoin market have benefited from the opportunity to

• enter the "main buying area" and have purchased more bitcoin during

the rollbacks, according to market intelligence firm Santiment.

The company drew lists that addresses containing more than 1,000 bitcoins

made "some cumulative movements in the last 24 hours"

while bitcoin was priced narrowly between $61,000 and $64,000.

In a May 9 post on social media platform X

Santiment stated:

"Portfolios containing 1,000 to 10,000 bitcoin accumulated a total of

about $941 million in currencies, returning to a portfolio high within two weeks."

The data provider on the chain explained that this means that large investors in

bitcoin show "signs of confidence despite the price drop to $62,000."

Overall

this is a positive sign as the continuous accumulation indicates

optimism among this category of investors.

Bitcoin stock on exchanges declines

Data from cryptocurrency chain data analytics company CryptoQuant indicates

that bitcoin stock on the exchanges has reached a five-year low

falling 6.54% over the past 90 days to 1.927 million bitcoins.

The decline in bitcoin stock on exchanges simply means that investors

may draw their codes to their own currency portfolios, which indicates that

they have no intention of selling them in expectations of

increasing their prices in the future.