After a huge 25% rise from its low point in May 2024, Bitcoin prices are now going down. Analysts are still positive, though, and think that the economy will continue to grow in the near future.
One expert pointed out in a recent post on X that Bitcoin has strong support between $70,180 and $70,600. On-chain data shows that at these prices, more than 450,000 addresses bought more than 273,000 BTC. There is strong support at this level because of the large number of stocks. To break through this level, there would have to be a lot of selling pressure.
Bitcoin Market Levels Off
On-chain data company Glassnode says the Bitcoin market is leveling off after a lot of selling. Prices dropped all the way down to $56,500 this month, from a high point of $73,800 in March 2024. Prices have since gone back up, but bulls still haven’t been able to beat the old all-time highs. Also, Glassnode says that market volatility has gone down a lot, even though capital flows are still modest. It’s still not clear if this instability will get worse once Bitcoin goes over $72,000.
People who keep an eye on the market want to know if Bitcoin bulls can get through this slump. To comfort investors, another analyst on X said that pullbacks are a normal part of any bull market. The expert said that the recent 23% drop was to be expected. It is important to note that each pullback has started from a higher level, which suggests that the next local bottom could happen around $80,000.
At $72,000, Bitcoin is currently meeting strong opposition. Even though bulls have tried many times, especially during major efforts in early April, they have not been able to break through this level. Technically, this amount of resistance is still very important. Bitcoin prices could try $73,800 again or go even higher if the breakout works.
In the near future, more demand could be driven by additional capital coming into spot Bitcoin exchange-traded funds (ETFs) and a better mood in the market. This could give BTC bulls the boost they need to confirm the rise from May 20 and break through the local support.
