After breaking down from a short-term trading pattern, Bitcoin (BTC) rebounded at the $48,200 support area.
BTC had been falling since reaching a local high of $52,088 on Dec 27 (red icon). The downward movement continued until a low of $45,900 was reached on Dec 30.
The decrease seemingly caused a breakdown from the ascending parallel channel it had been trading in. However, the support line of the channel has been reclaimed. Therefore, since the lines of the channel are not being respected, it is likely that BTC is following a different pattern.
The bounce served to validate the $45,800 area as support. This is the main support area and is both a horizontal support level and the 0.618 Fib retracement support level.
The main resistance area is found at $51,500.
Exchange balance
The total BTC held on exchange addresses has been falling since the beginning of the year. it reached a low of 13.6% on April 14 (black circle), when the BTC price was close to its all-time high.
Despite bouncing back initially, the indicator continued dropping and reached a new yearly low of 13.4% (red circle). This means that investors are likely storing their coins in cold storage. This is often considered a bullish sign as it shows conviction in the market.
Institutional investment
The Purpose Bitcoin ETF holdings have been increasing considerably since the beginning of December. This means that despite the drop in price, institutions are buying the dip, more specifically in prices between $47,000 and $53,000.
The number of BTC in holdings reached a new all-time high of 30,528 BTC on Dec 14. Therefore, institutional interest in BTC is still increasing.
On-chain analyst @Wclementelll tweeted several charts that show institutions have been more active in the market when compared to retail investors. The reason for this is that volume of transfers between $10,000 and $100,000 has fallen, while those over $10,000,000 have increased.
This aligns with the charts from Purpose ETF holdings.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here
Etekcity Food Kitchen Scale, Digital Grams and Ounces for Weight Loss, Baking, Cooking, Keto and Meal Prep, LCD Display, Medium, 304 Stainless Steel
$10.99 (as of November 7, 2024 18:44 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Amazon Basics Digital Kitchen Scale with LCD Display, Batteries Included, Weighs up to 11 pounds, Black and Stainless Steel
$10.19 (as of November 7, 2024 18:44 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
LEGO Icons Poinsettia Building Set - Artificial Flowers Christmas Decoration & Centerpieces for Table, Adults Ages 18+ - Gift Ideas for Mom, Dad, & Significant Other - 10370
$49.95 (as of November 7, 2024 18:48 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Yuzcxxx Musk's MAGA Hat Donald Trump 45-47 Never Surrender MAGA Hat Trump 2024 USA Embroidered Adjustable Baseball Cap Hats Black
$3.00 (as of November 7, 2024 18:48 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
