Bitcoin Price To Hit This Lower Level Before Starting A Fresh Rally

The post Bitcoin Price To Hit This Lower Level Before Starting A Fresh Rally appeared first on Coinpedia Fintech News

After closing the past two weeks on a bearish outlook, Bitcoin’s (BTC) price opened Monday with further weaknesses. According to the latest market data, Bitcoin’s price dropped approximately 3 percent in the past 24 hours, leading to Monday’s trade of around $40,617 during the mid-London session. The ongoing Bitcoin price correction has induced notable bearish sentiment in the altcoin market, which recorded similar losses during the same period. 

Crypto Whales Heighten On-chain Activity 

Since several spot Bitcoin ETFs were approved in the United States on January 10, crypto whales have increased their on-chain activities. Grayscale Investments has been the leading force behind the bearish sentiment, having offloaded about 52,227 Bitcoins worth approximately $2.2 billion in the past two weeks. Nonetheless, Grayscale’s GBTC still holds the majority among the spot ETF issuers with about 566,973 coins. 

Notably, both short-term holders and miners have been depositing large amounts of Bitcoins to cryptocurrency exchanges in the recent past. 

Bitcoin Price Action

Despite the short-term Bitcoin bearish sentiments, most crypto analysts believe the macro bulls are in control, fueled by the mass adoption from institutional investors and the upcoming halving in April.

According to Glassnode cofounder alias Negentropic on the X platform, Bitcoin price is in the early stages of a bull market similar to the 2017 and 2020 cycles. Notably, the crypto analyst argued that Bitcoin price often reaches the 6.618 Fib Extension in a bull market, which currently coincides with $120,000. 

In the short term, Bitcoin will likely find a solid support level above $32k, where the instrument will rebound for a fresh bull leg.