Bitcoin may have suffered its deepest correction since the FTX crash in November 2022, falling more than 20% from its all-time high of around $74,000. However, a Glassnode analyst shared his opinion: preview Remain cautiously optimistic about X.
Bitcoin is down 20% from its March high, but Glassnode is bullish
Glassnode notes that Bitcoin’s “macro uptrend remains one of the most resilient in history” and that while corrections have occurred, they have been relatively shallow. This position allows the blockchain analytics platform to confirm that the coin has improved with increased liquidity and therefore reduced volatility.
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Since the correction to the highs in March 2023, Bitcoin has struggled to maintain its upward trend. So far, BTC has received about $60,000 of support. key The reaction level to watch is $56,500 at the bottom. Conversely, if the price recovers and surpasses $66,000, BTC may rise to exceed $72,000 and later $74,000.
However, fundamental factors will be the trigger for the bulls to find support and for the price to rebound. While price action structures can provide support, price catalysts, as history shows, are tied to market events.
As Glassnode observed, strong macro trends bullish for Bitcoin have helped sustain the upward trend by reducing volatility. As the blockchain analytics platform points out, increasingly shallow corrections point to a more mature market supported by more institutions.
Whales accumulating as institutions, pay attention to BTC
Confidence remains high. On-chain data Open to the public The idea is that one whale took advantage of the correction by relatively low prices and hoarding coins.
Last week, the whale purchased over 100 BTC, bringing the amount of coins purchased this month to over 7,257 BTC. This aggressive accumulation suggests Bitcoin may be undervalued despite whales currently hitting multi-year highs.
More Bitcoin tailwinds could be coming. For example, this week former US President Donald Trump began accepting cryptocurrency donations for his ongoing campaign. This change in stance was bullish after Trump dismissed Bitcoin earlier.
While this happens, European regulators appear open to approving Bitcoin as an investable asset within Undertakes for Collective Investment in Transferable Securities (UCITS) funds. If this goes through, billions more dollars of Bitcoin could be secured from European institutions.
This move is huge considering that large companies like Morgan Stanley and BNP Paribas are already exploring ways for their customers to invest in BTC.
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At the macro level An increase in M2 money supply in the U.S. could further boost Bitcoin demand amid concerns from the U.S. Federal Reserve over high inflation. Like gold, BTC is considered a safe haven and hedge against inflation because its supply is designed to be deflationary.
Featured image by DALLE, chart by TradingView