Bitcoin (BTC) price has fallen 1.85% over the past 24 hours and is currently trading 17% below its all-time high of $73,835 hit on March 14.
Despite this performance, technical setup, whale activity and on-chain data show that Bitcoin traders believe a trend reversal to the news high could occur.
Bitcoin price retests key support area
Bitcoin price has fluctuated between $60,648 and $62,800 over the past 24 hours, according to data from Cointelegraph Markets Pro and TradingView.
Bitcoin’s monthly chart shows that the current price range is retesting the area that served as resistance when BTC hit its previous all-time high, as observed by popular analyst Rekt Capital.
According to Rekt Capital, this area is now acting as support for BTC as the halving sell-off last month did not push the price below this range.
“On a monthly basis, Bitcoin is still retesting its previous all-time major resistance zone (red) with a new support level (green).”
Fellow analyst Mustache made the same observation while sharing a 3-day chart of BTC/USD, showing that the price is trading close to previous all-time highs.
According to Mustache, this has only happened twice in the past, in 2017 and 2020. In both cases, the previous all-time high supported the Bitcoin price, after which the coin went on a parabolic upward trend and broke new record highs.
In another
“After getting back on the line in 2012, 2016 and 2020, Bitcoin is just getting started. This will go much higher.”
Whale Accumulation Supports Bitcoin’s Potential Rise
In response to the market downturn over the past few days, Bitcoin whales have taken advantage of entering a “prime buying zone” to buy more BTC in bear markets, according to market intelligence firm Santiment.
The analytics firm noted that addresses holding more than 1,000 BTC “have seen some accumulation movement over the past 24 hours,” as BTC is tightly spread between $61,000 and $64,000.
In a post on the X social platform on May 9, Santiment said:
“Wallets with 1K-10K $BTC have accumulated a total of $941 million worth of coins, rebounding to their highest holding level in two weeks. ”
This means that large Bitcoin investors “are showing confidence despite the price falling to $62,000,” the on-chain data provider explained.
Overall, this is a positive sign as continued accumulation indicates optimistic sentiment among the investor community.
Related: Bitcoin price buys time at $61,000 as U.S. unemployment claims hit nine-month high.
Bitcoin balance on exchange decreases
BTC balances on exchanges reached a five-year low of 19.27 million BTC after falling 6.54% over the past 90 days, according to data from on-chain measurement analytics firm CryptoQuant.
A declining BTC balance on an exchange simply means that investors can withdraw tokens to a self-managed wallet, indicating that they have no intention of selling in anticipation of future price increases.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.