More than 450,000 addresses bought 273,000 BTC at this level

bitcoin is cooling off after an impressive 25% rise from the May 2024 lows. Even with this cooldown, some analysts are optimistic and predict the coin will extend gains in future sessions.

bitcoin Finds Strong Support Between $70,180 and $70,600

In a post on x, an analyst x.com/ali_charts/status/1793200869955010597″ target=”_blank” rel=”nofollow”>believe bitcoin has strong support at around $70,180 and $70,600. The analyst explained that on-chain data shows that over 450,000 addresses collectively purchased over 273,000 btc in this price range.

For this reason, the concentration of btc holdings in this area means that the coin has strong support. If the level is to be broken, then sellers would have to put in even more effort to break this line, with more btc reaching the sell side of the equation.

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On-chain analytics company Glassnode x.com/glassnode/status/1792892631938203718″ target=”_blank” rel=”nofollow”>grades that the bitcoin market is cooling after intense selling pressure. After the strong rally that saw the coin reach $73,800 in March 2024, prices plummeted to $56,500 this month. Prices have since recovered, but the bulls are yet to surpass all-time highs.

While capital inflows remain moderate, Glassnode adds, volatility has decreased markedly. Still, it remains to be seen whether this volatility will skyrocket once $72,000 is breached.

btc Pulls Back: Will Bulls Break Above $72,000?

All eyes are on whether btc bulls will break out of the current correction. In a post on x, another analyst x.com/CryptoJelleNL/status/1793218820502327527″ target=”_blank” rel=”nofollow”>saying Holders should not worry about this pullback and the bulls' failure to confirm the May 20 bullish leg.

Instead, the analyst is confident, stating that pullbacks are a natural part of any bull market. The recent 23% correction, the analyst added, is an example.

The important thing is that each pullback has been from a higher position. Therefore, the next local low will likely be higher than the previous one, potentially reaching around $80,000.

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So far, btc has strong resistance at $72,000. The bulls did not break above this line, even with more serious attempts in early April.

As a result, this level of reaction is still important from a technical perspective. Any breakout for now would increase the likelihood of btc prices floating to retest $73,800 or move higher.

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In the coming days, inflows into bitcoin exchange-traded funds (ETFs), coupled with improving sentiment, could drive further demand. In that probability, btc bulls will find the momentum to confirm the May 20 bar and overcome local resistance.

Featured image of DALLE, TradingView chart