Despite current price levels suggesting a potential bottom for Bitcoin, confirmation requires repeated testing of support levels.
- Analysts predict the imperative $50K BTC support will hold. Increased wallet activities on Bitcoin signals long-term bullish sentiment.
The idea that Bitcoin [BTC] has hit its bottom is not confirmed. For a true bottom, the price needs to revisit the support level multiple times.
Prices don’t usually bottom out and stay there; they often form a double bottom, make a higher low, or move sideways to accumulate.
If the $50k-$52k level is to hold, the price would have revisited it 95% of the time, as we are seeing now. If this level isn’t the bottom, the price will fall through on this revisit.
However, if it is the bottom, the price should come back to this level with a slow pullback.
To be confident in the market’s next move, let the price build support. Traders and investors can now use dollar-cost averaging or invest when the price confirms this support.
Source: TradingView
Mayer Multiple is at the lowest level since 2022
The Mayer Multiple measures Bitcoin’s current price against its 200-day moving average. This 200-day average is a well-known indicator to determine if the market is generally rising or falling.
Currently, the Mayer Multiple is at its lowest level since the 2022 Bear Market Bottom. If you think Bitcoin’s price will rise in the next 6-12 months, now is a great time to buy. This period offers an opportunity to invest at lower prices.
Source: Glassnode
Whales buy more BTC during the dip
The number of Bitcoin addresses holding over 100 BTC rose from 15,913 to 16,006 during the recent market dip, showing that large investors bought more Bitcoin.
Former MicroStrategy CEO Michael Saylor, a major Bitcoin holder, announced he owns over a billion dollars’ worth of Bitcoin. Data from Glassnode shows this metric reached its highest point in 2024.
Source: Glassnode
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Data from CryptoQuant showed that since the Spot Bitcoin ETF was launched, the number of new Bitcoin wallets holding over 1,000 BTC has surged to an all-time high.
This increase indicates that large, savvy investors are buying more Bitcoin, while smaller investors and traders are selling in a panic.
Source: CryptoQuant
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