Bitcoin, the leading cryptocurrency, started the week with an increase and rose above $ 70,000 during the day. However, BTC could not hold on here and fell to $ 69,000.
While Bitcoin, which has been in decline and consolidation since its ATH in March, failed to hold on above $ 70,000, cryptocurrency exchange Bitfinex explained the reason for the decline.
Accordingly, Bitfinex analysts said that the sharp declines that Bitcoin has experienced since March are probably due to the sales of long-term BTC holders.
However, analysts stated that on-chain data shows that the downward trend in Bitcoin has stopped and investors are accumulating BTC, and included the following statements in their report:
“Bitcoin and the broader crypto market have spent more than two months in a consolidation phase since March, when BTC reached a record price of over $73,000.
The main reason Bitcoin fell from all-time highs was profit-taking by long-term investors, but data shows that these investors started accumulating BTC again for the first time since December 2023.
At this point, the correction phase in Bitcoin seems to be coming to an end.
Because, according to CryptoQuant data, the number of new Bitcoin and Ethereum deposit addresses increased last month. “This is a sign of an increasing upward trend despite price stability.”
Apart from Bitfinex, crypto analysis firm Swissblock analysts also evaluated Bitcoin's movements and stated that the $70,000 and $73,000 levels constitute an important resistance limiting the price of BTC.
“The $70,000-$73,000 levels remain a significant resistance to Bitcoin's rise.
“Short-term pullbacks from these levels are considered buying opportunities for BTC, and the $67,000 level is seen as reliable support.”
On-chain analysis firm CryptoQuant also announced that 50% of the long-term Bitcoin supply is inactive and there is no movement or change in tracked wallets. CryptoQuant said this is a sign of strong long-term belief, which could point to further price gains.
*This is not investment advice.
