After breaking away from a short-term business model, Bitcoin (BTC) rebounded into the $ 48,200 support area.
BTC has been declining since hitting a local high of $ 52,088 on December 27 (red icon). The downward movement continued until a low of $ 45,900 was reached on December 30.
The drop apparently caused a break in the ascending parallel channel in which it was trading. However, the channel support line has been recovered. Therefore, since the channel lines are violated, it is likely that BTC will follow a different pattern.
The rebound served to validate the $ 45,800 area as support. This is the main support area and it is both a horizontal support level and the 0.618 Fib retracement support level.
The main resistance area is found at $ 51,500.
Total BTC held on exchange addresses has been declining since the start of the year. it hit a low of 13.6% on April 14 (black circle), when the price of BTC was near its all-time high.
Despite an initial rebound, the indicator continued to decline and hit a new annual low of 13.4% (red circle). This means that investors are likely storing their coins in a cold store. This is often seen as a bullish sign as it shows market conviction.
Purpose Bitcoin ETF’s holdings have grown significantly since early December. This means that despite the drop in prices, institutions are buying the drop, specifically at prices between $ 47,000 and $ 53,000.
The number of BTC held reached a new all-time high of 30,528 BTC on December 14. Therefore, institutional interest in BTC continues to increase.
Chain analyst @Wclementell tweeted several charts which show that institutions have been more active in the market than retail investors. This is because the volume of transfers between $ 10,000 and $ 100,000 has decreased, while those over $ 10,000,000 have increased.
This matches the charts of Purpose ETF holdings.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
All information on our website is posted in good faith and for general information purposes only. Any action that the reader takes with the information found on our website is strictly at his own risk.