Over the weekend, the primary digital currency, Bitcoin, experienced an abrupt influx of selling activity, dropping from its peak of $52200, the highest in 26 months. The sudden 2% drop caused the BTC price to fall to $51220 and initiated a fresh downward trend in the market.
Yet, considering the overall positive market sentiment, the possible decline could present a chance for traders to capitalize on a temporary setback.
Increases in Whale Holdings Point To an Upcoming Bitcoin Rally That Will Be Long-Lasting
There has been a significant increase in the amount of money invested in Spot Bitcoin ETFs over the past three weeks, which has led to a substantial rebound in the price of Bitcoin. Once it reached its previous low of $38550, the cost of cryptocurrency skyrocketed by more than 37% to attain its highest point of $52865.
An apparent breakthrough occurred during the surge when buyers were able to surpass the $49000 neckline barrier of the cup and handle formation. This particular chart configuration typically results in a prolonged accumulation period prior to the initiation of a new upsurge.
As a result, the most recent price indicates that the Bitcoin price has broken free from a period of accumulation that lasted for 22 months, which marks the beginning of a potential trend reversal.
In addition, the cryptocurrency analysis company IntoTheBlock has reported that there has been a significant increase in the amount of Bitcoin that is held by large investors, which indicates that there has been a robust trend of accumulation in the current year. As a result of the increased accessibility of Bitcoin for institutional investors, the company anticipates that this pattern will continue without interruption.
Top 5 Cryptocurrencies Today:
| Name | Price | 24H (%) |
|---|---|---|
Bitcoin
(BTC)
| $29,078.00
| -3.19% |
Ethereum
(ETH)
| $1,948.11
| -4.71% |
Tether
(USDT)
| $1.00
| -0.03% |
BNB
(BNB)
| $295.60
| -1.51% |
Cardano
(ADA)
| $0.51
| -10.30% |
>> Invest In Cryptocurrencies Now!
Whales’ cryptocurrency holdings have experienced significant growth over this year. This pattern is likely to persist, given that it is now more convenient than ever for organizations to obtain Bitcoin.
— IntoTheBlock
Is the Price of Bitcoin Going to Fall Below $50,000?
Following an upswing that lasted for three weeks, the value of Bitcoin ran into a significant barrier at $52,000. Because of the renewed supply pressure, Bitcoin (BTC) experienced a decline of 2%, which has an impact on the alternative cryptocurrency market and may result in a new correction.
Retracements, on the other hand, are standard in mature uptrends because buyers pull back from the market at regular intervals in order to regain their momentum. Regarding the breakout of the cup and handle pattern, it is reasonable to anticipate that the price of Bitcoin will return to $49000 in order to validate support for additional gains.
If this level remains intact, the buyers could target an extended surge towards $82640.
- Exponential Moving Average: The rapidly changing 20- EMA angle could provide appropriate retracement assistance for the BTC price.
- Directional Movement Index: A significant difference in the slope between the DI+(blue) and DI-(orange) indicates that the general trend is still very bullish.
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