Volatility remains one of the characteristics of Bitcoin that can easily change the attitude of investors. For some, a downward movement will signal a period of massive accumulation and expansion of their holdings. On the other hand, some will suffer huge losses by pulling back.
Bitcoin has been on the decline as it reached a monthly low of $39,000 within a few days of hitting the $40,000 mark. Although many people expected the bitcoin price to show some bearish trend for a few days, events proved otherwise.
Bitcoin has taken a gradual bearish run by moving into the 37K-40K region. This recent drop has given some whales the opportunity to make massive token purchases.
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CryptoQuant Technical Analyst, Minkyu Woo, advertiser That a large volume of currency was transferred through spot exchanges during the sale of Bitcoin.
He pointed out that whales could buy a large amount of BTC since the volume of the outflow can only be sustained by checking the top 10 BTC on the exchanges.
Analyst Explains The Entire Bitcoin Price Action
According to Woo, the 37K-40K mark stands as the BTC price range in the critical accumulation phase of the cryptocurrency. The move began long ago in March 2022. Wu also advised investors to hold their holdings or buy more dips if possible.
In the past, where there were escalations Flow volume, a remarkable amount of BTC was taken out across the exchanges. However, a sudden reversal occurred in the heavy selling in the market as the price of the cryptocurrency rose.
Recent events have followed a similar pattern as Bitcoin regained all of its losses by moving to the $41,000 area.
Moreover, Woo explained that Bitcoin had a support below 200 MA from the fourth quarter of 2020. This means that BTC will have more smart money buildup.
In his chart, Woo indicated a pullback pattern for BTC in the lower zone and subsequent rally and buying interest.
Just as Bitcoin has shown its bearish trend, the action reflects the general state of the broader crypto market. Along with Bitcoin, Ethereum signaled significant declines by moving below the $3K level. Also, other prominent altcoins are not excluded in the price action towards the south.
Fortunately, the entire cryptocurrency market appears to be rising in an upward recovery movement starting today. Ethereum is back in the $3000 area, and BNB is up within the $400 level. Other altcoins are closing in on the recovery trend.
Featured image from Pexels, charts from TradingView.com