Bitcoin may have experienced the biggest correction since November 2022’s FTX crash, dropping over 20% off its previous high price of about $74,000. Glassnode’s analysts have shared their views on the matter. preview On X, be cautiously optimistic.
Bitcoin Falls 20% From March’s High But Glassnode Bullish
Glassnode is a Bitcoin-like cryptocurrency. “macro uptrend still appears to be one of the more resilient in history” The corrections are also relatively minor. The blockchain analytics platform has confirmed that this coin is now more liquid, which reduces volatility.
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Bitcoin is struggling to keep up the upward trend after the recent correction. BTC’s support is around $60,000. The key to success is: The lower reaction level is $56,500. BTC could rally if the price recovers, allowing it to break above $66,000. It may even reach $72,000, and then $74,000.
Fundamental factors are the triggers that will cause bulls to gain support, and for prices to rise. Although price structure may provide support, historical evidence shows that price catalysts tend to be related to events in the market.
Glassnode explains that the bullish macrotrend for Bitcoin has helped to reduce volatility. This in turn, helps maintain the trend. According to the Blockchain Analytics Platform, increasingly shallow corrections indicate a market more developed and backed by institutional investors.
The Institutions are focusing on BTC as Whales accumulate
Confidence is high. On-chain data reveals The whale took advantage the the relative low prices, and the price corrections to accumulate coins.
The whale has bought more than 100 BTC in the past week. This brings the total amount purchased this month up to 7,257 BTC. The aggressive accumulation of Bitcoin by the whale suggests that even though Bitcoin is at a multi-year high right now, it could still be undervalued.
Bitcoin could see more positive developments in the future. This week, Donald Trump, the former president of the United States, began accepting cryptocurrency donations for his ongoing presidential campaign. Since Trump previously dismissed Bitcoin, this shift is a positive development.
Meanwhile, European regulators seem open to approving Bitcoins as an investable assets within Undertakings for Collective Investment in Transferable Securities Funds (UCITS). This could lead to more European institutions investing billions in Bitcoin if this happens.
It is a massive move, especially when you consider that Morgan Stanley and other banking giants are involved. BNP Paribas They are exploring the possibility of allowing their customers to invest in BTC.
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At a macrolevel, there are two distinct levels of The Federal Reserve’s concern that the inflation rate is too high could further boost Bitcoin demand. BTC like gold is a haven of safety, an inflation hedge, because its production is intended to be deflationary.
Chart from TradingView, Featured image by DALLE
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Source: www.newsbtc.com