bitcoin could 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, although sharing their twitter.com/glassnode/status/1788557758729437281″ target=”_blank” rel=”nofollow”>Advance at x, remain cautiously optimistic.
bitcoin drops 20% from March high, but Glassnode is bullish
Glassnode notes that bitcoin's “macro bullish trend still appears to be one of the most resilient in history” and that although corrections have been made, they are relatively superficial. With this position, the blockchain analysis platform confirms that the currency has improved with increased liquidity, reducing volatility.
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Following the correction from the March 2023 highs, bitcoin has struggled to maintain the uptrend. So far, btc has support at around $60,000, but a key The reaction level to watch is $56,500 on the lower side. On the other hand, if prices recover and surpass $66,000, btc could rally, even surpassing $72,000 and then $74,000.
However, for the bulls to find support and prices to rise, the triggers would be fundamental factors. Although the structure of the price action could offer support, price catalysts are, as history shows, related to market events.
As Glassnode notes, the strong macro, bullish trend for bitcoin has reduced volatility, helping maintain the bullish trend. The increasingly superficial corrections, as noted by the blockchain analysis platform, point to a more mature market supported by more institutions.
Whales pile up as institutions eye btc
Confidence remains high. Chain data twitter.com/invest_answers/status/1788724045573497328″ target=”_blank” rel=”nofollow”>reveals that a whale took advantage of the relatively low prices and the correction to accumulate coins.
In the last week, the whale purchased over 100 btc, bringing the number of coins purchased this month to over 7,257 btc. This aggressive accumulation suggests that bitcoin, even at the current multi-year high, could be undervalued.
There could be more tailwinds for bitcoin. For example, this week, former US President Donald Trump began accepting crypto donations in the ongoing campaign. This change in stance has been bullish since Trump previously dismissed bitcoin.
While this is happening, European regulators seem open to approving bitcoin as an investable asset within Undertakings for Collective Investment in Transferable Securities (UCITS) funds. If this comes to fruition, it could unlock more billions in bitcoin from European institutions.
This move is huge, considering that 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 Rising M2 money supply in the United States amid concerns from the US Federal Reserve that inflation is high could further drive demand for bitcoin. btc, like gold, is considered a safe haven, a hedge against inflation, as its supply is designed to be deflationary.
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