Bitcoin Down 20% From March But Glassnode Analysts Are Very Bullish: Here’s Why
11 Mai 2024 - 3:00AM
NEWSBTC
Bitcoin might have posted the deepest correction since the FTX
crash in November 2022, dipping over 20% from its all-time high of
around $74,000. However, Glassnode analysts, while sharing
their preview on X, remain cautiously optimistic.
Bitcoin Drops 20% From March High, But Glassnode Is Bullish
Glassnode notes that the Bitcoin “macro uptrend still appears to be
one of the more resilient in history” and that though corrections
have been made, they are relatively shallow. With this position,
the blockchain analytics platform confirms that the coin has
improved with liquidity rising, reducing volatility. Related
Reading: Crypto Expert Forecasts The ‘Age of Ethereum’: What This
Means Following the correction from March 2023 highs, Bitcoin has
struggled to maintain the uptrend. So far, BTC has support at
around $60,000, but a key reaction level to watch is
$56,500 on the lower side. On the flip side, if prices recover,
breaking above $66,000, BTC might rally, even breaching $72,000 and
later $74,000. However, for bulls to find support and prices to
rally, triggers would be from fundamental factors. Though price
action structure might offer support, price catalysts are, as
history shows, related to market events. As Glassnode observes, the
robust macro trend, bullish for Bitcoin, has tapered volatility,
helping maintain the uptrend. The increasingly shallow corrections,
as the blockchain analytics platform notes, point to a more mature
market backed by more institutions. Whales Accumulating As
Institutions Eye BTC Confidence remains high. On-chain data reveals
that one whale has taken advantage of the relatively low prices and
the correction to stack coins. In the last week, the whale bought
over 100 BTC, pushing the amount of coins bought this month to over
7,257 BTC. This aggressive accumulation suggests that the whale,
even at the current multi-year high, Bitcoin could be undervalued.
There could be more Bitcoin tailwinds incoming. For instance, this
week, former United States president Donald Trump started accepting
crypto donations in the ongoing campaign. This shift of stance has
been bullish since Trump dismissed Bitcoin earlier. While
this happens, European regulators appear open to approving Bitcoin
as an investable asset within Undertakings for Collective
Investment in Transferable Securities (UCITS) funds. If this goes
through, it could unlock more billions into Bitcoin from European
institutions. This move is massive, considering that banking giants
like Morgan Stanley and BNP Paribas are already exploring ways for
their clients to invest in BTC. Related Reading: Bitcoin 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 United States Federal Reserve that inflation is
high might further buoy Bitcoin demand. BTC, like gold, is
considered a safe haven, a hedge against inflation since its supply
is designed to be deflationary. Feature image from DALLE,
chart from TradingView
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