Bitcoin Hovering Below $40k, What Next for BTC Price? – Coinpedia – Fintech & Cryptocurreny News Media
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After a 15% drop in the last two weeks, Bitcoin (BTC) appears to be stabilizing. The cryptocurrency has so far maintained support over $37,000, which is comparable to what happened in early March.
Nonetheless, during the last few months, BTC has maintained in a tight trading range around the $40,000 price level.
To suggest a price rebound outside of the present trading range, a positive momentum signal on the daily chart is required.
Will Bitcoin Price Witness a Rally Soon?
Bitcoin, which is presently trading at $40,823, had earlier dropped below $40k for the second time in the last 24 hours.
Over a longer period, BTC is in an ascending channel, progressively inclining to establish $40k as a much more strong support.
However, on a far more interesting note, this time, investors are not concerned about losses. BTC holders appear to be adopting the buying-the-dip mentality as they prepare for a quick recovery/rally.
After the two-week rise in March, this fall was expected to be a cooling off period, albeit a loss of this magnitude was not anticipated.
It also resulted in the loss of around 16.5 percent of Bitcoin’s entire circulating supply, or about 3.135 million BTC worth $123.4 billion.
Despite this, investors purchased over 39,536 BTC worth $1.54 billion in the last week before dumping 11k BTC ($429 million) back into the market.
Second, this shows that BTC holders are HODLing for profit, as profit-takers have been holding onto their supply since November 2021, when Bitcoin reached its all-time high of $66,945.
The RPV ratio is on the verge of bottoming, as it was last in July 2020, when Bitcoin soared by 28 percent in the following ten days.
This could indicate that Bitcoin is on its way to a rally in the near future, allowing investors to profit from their recent buy.
Given that the network value is at a two-month low, the king coin is currently grossly undervalued. This would also serve as the necessary fuel to rekindle the fire.
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