Bitcoin Price: On Saturday, the leading cryptocurrency Bitcoin witnessed a sudden selling pressure reverting from its 26-month high of $52200. The 2% intraday loss plunged the BTC value to $51220 and sparked a new correction trend in the market. However, with the broader market still bullish, the potential drop may offer a pullback opportunity for traders.

Also Read: 5 Altcoins To Buy Likely To Outperform Bitcoin In 2024

Surging Whale Holdings Signal a Sustained Bitcoin Rally Ahead

Over the past three weeks, the Bitcoin price has witnessed an aggressive recovery in response to increasing inflow in the Spot Bitcoin ETFs. From the last swing low of $38550, the coin value surged over 37% to hit a high of $52865.

Amid the rally, the buyers provided a decisive breakout from the $49000 neckline resistance of the cup and handle pattern. This chart setup is known to drive a long accumulation phase before initiating a new rally.

Thus, the recent price indicated the BTC price escaped from a 22-month accumulation, indicating an early signal of a trend reversal. 

Moreover, the crypto analytics firm IntoTheBlock has highlighted a significant uptick in Bitcoin holdings among whales, signaling a strong accumulation trend this year. The firm anticipates this trend to persist, citing the improved accessibility of Bitcoin for institutional players.

Whales’ Bitcoin balance has increased strongly this year. We expect this trend to continue, as it is now easier than ever for institutions to access Bitcoin pic.twitter.com/KK4ioHKzNn

— IntoTheBlock (@intotheblock) February 17, 2024

Also Read: Bitcoin Freedom: 3 US States Step Up To Defend BTC Rights Amid Bullish Outlook

Is Bitcoin Price Heading Below $50K?

Bitcoin Price| Tradingview

Following a three-week rally, the Bitcoin price witnessed a significant roadblock at $52000. The renewed supply pressure triggers a 2% drop in BTC, impacting the altcoin market with the possibility of a new correction.

However, such pullbacks are common in an established rally as buyers take occasional breathers to replenish their strength. Concerning the cup and handle pattern breakout, the BTC price is likely to retest $49000 to signal sustainability for higher levels.

Should this level hold, the buyers may aim for a prolonged rally to $82640.

Exponential Moving Average: The fast-moving 20- EMA slope may offer suitable pullback support for the BTC price.
Directional Movement Index: A wide gap between the DI+(blue) and DI-(orange) slope reflects the overall trend remains strongly bullish.

Related Articles: Crypto Prices Today: Bitcoin Nears Drop Below $52K, ETH, SOL, XRP, PEPE Decline

The post Key Levels to Watch As Bitcoin Price Sparks New Correction From $52000 appeared first on CoinGape.

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Filed under: News - @ February 17, 2024 6:19 pm