After a strong pullback from the $36,000 and $34,000 levels, Bitcoin has begun to recover and reclaim the prices it once lost, as the BPI technical indicators suggest.
BTCUSD, -0.86% , the largest cryptocurrency by market capitalization, has been trading lower since it started the week. The price dipped below $37,000 and it is currently sitting at $36,452.00, according to data from the CoinDesk Bitcoin Price Index
Bitcoin has certainly taken a beating lately, and the price has fallen from its all-time high of $20,000. However, a closer look at the charts suggest that the price correction is not over yet. Our technical indicators suggest that the price could return to the upside by the end of the year.CryptoQuant’s data shows that the number of bitcoins held on exchanges has recovered from the 14.5 percent drop between June 2020 and April 2021. By the end of April and the beginning of May, the downward trend turned to an upward one, to $2.49 million. The 14.5 percent drop caused bitcoin balances on all exchanges to drop from $2.8 million to $2.3 million. (Source: CryptoQuant) This signal suggests short-term downward movement, as it would weaken the increase in BTC supply in the market and potentially increase selling pressure. The 14.5% drop suggests that long-term investors are gradually shifting their BTC stocks into closed-end savings funds or vaults to earn more interest. The IOMAP model shows that most bitcoin owners are currently in the money, with a gain of 39.27%. The big green ball is in the $35,012 to $36,085 price range. This suggests that the price range is already in place and will provide support for any correction in bitcoin that occurs in the short term in the coming weeks. (Source: Into the Blocks) However, there is exhaustion of addresses with positions near the current price of $36,000, suggesting that most holders who bought at this level are already in the process of selling their positions to break even. The total number of addresses with positions in this range is 41,000. So we can assume that if the chamber is a support here, it won’t be as strong. The big red balloon next door has 1M addresses in the $36, $148 and $37,220 price range. A large accumulation of holders with positions in this area indicates the possibility of buying pressure at this level. This also suggests a high probability of bitcoin finding support above $37K. The channel’s data also show the first decline in whale activity since November 2020. The number of large transactions fell from 28,000 to 12. April 2021 at noon on the 6th. June 2021. (Source: Into the Block) The decline in whaling activity is a positive sign that another acquisition by large investors is on the horizon. But it also depends on whether the whale deal is a sale or a purchase. Currently, bitcoin is also recovering from the hash rate collapse that occurred around mid-May. The Bitcoin rate has fallen sharply twice this year, the first time on April 15 and the second time on April 15. May. (Source: Blockchain.com) The initial drop in April may be related to the exodus of Chinese miners due to the start of the rainy season in Sichuan, while the drop in May may be due to increased repression of miners by Chinese regulators.After the February 28th low, in which the market went through a correction, Bitcoin has seen the market bounce back up to over $38,500. The next key level for bulls will be $37,000, to confirm a recovery and provide support.. Read more about bitcoin plunges below $18,000 and let us know what you think.
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