News
Here’s Why – TradingView News
Bitcoin may have recorded the deepest correction since the FTX crash in November 2022, falling more than 20% from its all-time high of around $74,000. However, Glassnode analysts, while sharing their X preview, remain cautiously optimistic.
NewsBTC
Bitcoin drops 20% from March high, but Glassnode is optimistic
Glassnode notes that Bitcoin’s “macro uptrend still appears to be one of the most resilient in history” and that while corrections have been made, they are relatively superficial. With this position, the blockchain analytics platform confirms that the coin has improved with increased liquidity, reducing volatility.
Following the correction from the March 2023 highs, Bitcoin has struggled to maintain the uptrend. So far, BTC has support around $60,000, but a key reaction level to watch is $56,500 on the lower side. On the other hand, if prices recover, exceeding US$66,000, BTC could rise, even surpassing US$72,000 and later US$74,000.www.tradingview.com/x/YPurRy5M
However, for bulls to find support and prices to rise, the triggers would be fundamental factors. While price action structure can provide support, price catalysts are, as history shows, related to market events.
As Glassnode notes, the robust, bullish macrotrend for Bitcoin has decreased volatility, helping to maintain the uptrend. The increasingly superficial corrections, as the blockchain analysis platform notes, point to a more mature market, supported by more institutions.
Whales Accumulate as Institutions Watch BTC
Confidence remains high. Network data reveals that a whale took advantage of relatively low prices and the correction to stack coins.
In the last week, the whale purchased more than 100 BTC, bringing the amount of coins purchased this month to more than 7,257 BTC. This aggressive accumulation suggests that even at the current multi-year high, Bitcoin may be undervalued.
There could be more Bitcoin tailwinds coming. For example, this week former US President Donald Trump began accepting crypto donations in his ongoing campaign. This change in stance has been bullish since Trump previously rejected Bitcoin.
While this is happening, European regulators appear open to approving Bitcoin as an investable asset in Undertakings for Collective Investment in Transferable Securities (UCITS) funds. If this happens, it could unlock billions more in Bitcoin from European institutions.
This move is huge considering banking giants like Morgan Stanley and BNP Paribas are already exploring ways for their clients to invest in BTC.
Related Reading: Bitcoin’s Short-Term NUPL Value Turns Negative, What This Means for Price
From a macro level, the increase in M2 money supply in the United States, amid concerns from the United States Federal Reserve that inflation is high, could further boost demand for Bitcoin. BTC, like gold, is considered a safe haven, a hedge against inflation, since its supply is designed to be deflationary.