In the last two weeks, Bitcoin (BTC) has struggled to break past the $37,500 mark, and signs suggest a possible reversal. As the crypto market increasingly favors altcoins, technical indicators hint at a shift in momentum.
The extent of Bitcoin’s correction may hinge on whether large whale holders reduce their selling pressure. Bernstein analysts, led by Gautam Chhugani, also revealed that Bitcoin miners have consistently sold off approximately half a billion dollars worth of coins each month.
Bitcoin Price Action
Willy Woo, a managing partner at CMCC Crest, believes that Bitcoin’s price is unlikely to dip below $30,000 again, based on his analysis of the Bitcoin Cost Basis Density map. According to Woo, this flagship cryptocurrency has shown a solid adherence to this tool, particularly during the accumulation period before halving events, which marked the bottom of bear markets.
Woo also highlighted the remarkable growth of the Bitcoin network, which has evolved from having 10,000 users in 2010 to a staggering 300 million people in 2023. He anticipates that this widespread adoption will pave the way for the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, opening the door for mainstream investors.
A Technical Perspective
For the first time since the 2021 Bitcoin bull run, the weekly Relative Strength Index (RSI) has surged above 70, indicating that Bitcoin is currently overbought. This suggests a potential retracement towards the support zone around $31,000. Retracement could attract more buyers and provide the necessary fuel for a subsequent rally toward a new all-time high (ATH). Notably, this support range aligns with the 50 percent auto Fib Retracement, a common reversal point in price trends.
In summary, Bitcoin faces a pivotal moment as it grapples with resistance around $37,500. The altcoin market gains favor, but technical indicators suggest a possible reversal. The actions of whale holders and Bitcoin miners, along with the growth of the network, are significant factors to watch. Willy Woo’s insights provide optimism, and the RSI signals potential price adjustments. Bitcoin’s journey in the coming weeks will be closely watched by investors and enthusiasts alike.