Bitcoin

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) price is down 1.85% over the last 24 hours and currently trades 17% below its <a href="https://cointelegraph.com/news/bitcoin-price-new-73-6-k-all-time-high-etfs-eat#:~:text=Data%20from%20Cointelegraph%20Markets%20Pro,dip%20before%20abruptly%20heading%20higher." rel="noopener noreferrer nofollow">all-time high of $73,835</a> reached on March 14.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/fd48b26c-738e-42e3-8245-dd448531b28c.png">
 <figcaption style="text-align: center;">BTC/USD daily chart. Source: <a href="https://www.tradingview.com/x/ulhVbKi6/" target="_blank" rel="noopener noreferrer nofollow">TradingView</a>
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Despite this performance, the technical setup, whale activity and on-chain data show that Bitcoin traders believe a trend reversal toward news highs could be in the making.
<h2 id="bitcoin-price-retests-key-support-areas">Bitcoin price retests key support areas</h2>
Data from <a href="https://subscription.cointelegraph.com/" rel="noopener noreferrer nofollow">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE" target="_blank" rel="noopener noreferrer nofollow">TradingView</a> shows Bitcoin price oscillating between $60,648 and $62,800 over the last 24 hours.
Bitcoin’s monthly chart shows the current price range is retesting an area that acted as a resistance when the BTC hit previous all-time highs, as <a href="https://x.com/rektcapital/status/1788539767178588404" target="_blank" rel="noopener noreferrer nofollow">observed</a> by popular analyst Rekt Capital.
According to Rekt Capital, this area is now acting as support for BTC since last month’s halving sell-off did not pull the price below this range.
<blockquote>
 “On the monthly timeframe, Bitcoin is still retesting the old All Time High major resistance area (red) as new support (green).”
</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/6f458d22-1139-4786-ac50-9ceec8bb360d.jpeg">
 <figcaption style="text-align: center;">BTC/USD monthly chart. Source: <a href="https://twitter.com/rektcapital/status/1788539767178588404/photo/1" target="_blank" rel="noopener noreferrer nofollow">Rekt Capital</a>
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Fellow analyst Moustache made the same observation, <a href="https://x.com/el_crypto_prof/status/1788107412030788012" target="_blank" rel="noopener noreferrer nofollow">sharing</a> a BTC/USD three-day chart showing that the price was trading at a level close to the previous all-time high.
According to Moustache, this has happened only twice in the past—in 2017 and 2020. In both cases, previous all-time highs supported Bitcoin’s price, after which the coin went on a parabolic uptrend, hitting new record highs.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/7cfb9d6f-ebfd-4b3d-bb08-06927bb353f7.png">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/el_crypto_prof/status/1788107412030788012" target="_blank" rel="noopener noreferrer nofollow">Moustache</a>
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In another X post on April 25, Moustache commented on a similar set-up on the monthly chart, <a href="https://x.com/el_crypto_prof/status/1788107412030788012" target="_blank" rel="noopener noreferrer nofollow">saying</a> that BTC was going higher after retesting the line.
<blockquote>
 “After reclaiming the line in 2012, 2016 and 2020, Bitcoin was just getting started. This will go much higher.”
</blockquote>
<h2 id="whale-accumulation-backs-bitcoin-s-potential-upside">Whale accumulation backs Bitcoin’s potential upside</h2>
Responding to the <a href="https://cointelegraph.com/news/why-is-the-crypto-market-down-today" rel="noopener noreferrer nofollow">market’s drawdown</a> over the last few days, Bitcoin whales took advantage of the entry into the “<a href="https://cointelegraph.com/news/bitcoin-price-still-in-prime-buy-zone-even-with-rally-to-65k" rel="noopener noreferrer nofollow">prime buy zone</a>” and bought more BTC in the dips, according to market intelligence firm Santiment.
The analytics firm noted that addresses holding more than 1,000 BTC have “made some accumulation moves over the past 24 hours” as BTC ranged tightly between $61,000 and $64,000.
In a May 9 post on the X social platform, Santiment <a href="https://x.com/santimentfeed/status/1788242018952749331" target="_blank" rel="noopener noreferrer nofollow">said</a>,
<blockquote>
 “Wallets with 1K-10K $BTC have collectively accumulated ~$941M worth of coins, rebounding to their highest holding level in 2 weeks. ”
</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/97b122d5-6715-499a-837b-7137d9203cd5.png">
 <figcaption style="text-align: center;">Bitcoin 1,000-10,000 BTC chart holdings. Source: Santiment
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This means large Bitcoin investors are “showing signs of confidence despite price drop to $62.000,” the on-chain data provider explained.
Overall, this is a positive sign as continued accumulation signals bullish sentiment among this cohort of investors.
Related: <a href="https://cointelegraph.com/news/bitcoin-price-61k-us-jobless-claims-9-month-highs" rel="noopener noreferrer nofollow">Bitcoin price buys time at $61K as US jobless claims hit 9-month highs</a>
<h2 id="declining-bitcoin-balance-on-exchanges">Declining Bitcoin balance on exchanges</h2>
Data from on-chain metrics analytics firm CryptoQuant shows that BTC balance on exchanges reached a five-year low of 1.927 million BTC after dropping 6.54% over the last 90 days.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-05/193e5530-1417-4d0d-a439-7e589846adf2.png">
 <figcaption style="text-align: center;">BTC reserve on exchanges. Source: CrytoQuant
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Decreasing BTC balances on exchanges simply means investors could be withdrawing their tokens into self-custody wallets, indicating a lack of intention to sell in anticipation of a future price increase.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

3 reasons why Bitcoin traders say a BTC price trend reversal is overdue

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