BTC Price Analysis: Here’s How Bitcoin Bulls Are Defying Market Odds

1 year ago 91

The post BTC Price Analysis: Here’s How Bitcoin Bulls Are Defying Market Odds appeared first on Coinpedia Fintech News

After a profitable first quarter, the Bitcoin market is bracing for lower returns in the second quarter amidst mounting bearish sentiment. However, this bearish outlook has not deterred Bitcoin investors from maintaining a macro-bullish perspective. On-chain data indicates that the number of addresses holding more than one Bitcoin has surpassed 1 million, with a notable surge occurring during the bear market.

What do these stats mean for the price?

Bitcoin Price Hits New Low

Last Friday, the price of Bitcoin experienced a sharp decline, plunging to around $25,878, following an eight-week consolidation period. Consequently, the Bitcoin price briefly dipped below the weekly 200MA before rebounding above $27k.

Interestingly, this drop coincided with a significant increase of over 151k BTC deposits on the largest crypto exchange, Binance. Currently, the Bitcoin price is hovering at a critical support/resistance level of approximately $27k.

The Line of Truth for Bitcoin Bulls

A well-known crypto trader and investor on Twitter, @CryptoTony_, suggests that $27.3k holds the key for Bitcoin bulls in the near term. According to this analyst, Bitcoin bulls must defend the $27.3k mark as support to avoid a further slide toward $24.2k.

Bearish Outlook Reinforced

The recent price drop has placed Bitcoin bears in a favorable position, potentially confirming the presence of a head and shoulder pattern. Historically, such candlestick patterns are swiftly followed by significant downturns. Consequently, Bitcoin price is expected to trade below $25.8k in the short term.

The Bitcoin market has witnessed a substantial influx of institutional investors and retail traders seeking refuge from the riskier traditional banking sector. Bitinfocharts’ market aggregate data reveals a substantial spike in daily transactions within the Bitcoin network over the past few months.