Bitcoin Price Corrects from 26-Month High, Offering Pullback Opportunity
The leading cryptocurrency, Bitcoin, experienced a sudden selling pressure on Saturday, causing a 2% intraday loss and dropping its value to $51,220. This correction trend presents a potential pullback opportunity for traders, especially considering the broader market’s bullish sentiment.
Whale Holdings Signal a Continued Bitcoin Rally
Bitcoin has seen a strong recovery in the past three weeks due to increasing inflow in Spot Bitcoin ETFs. Surging whale holdings indicate a sustained accumulation trend among institutional players. This trend is expected to continue as Bitcoin becomes more accessible to institutions.
Possible Drop Below $50K?
The recent roadblock at $52,000 caused a 2% drop in BTC price and raised concerns about a potential correction. However, pullbacks like this are common in established rallies. The cup and handle pattern breakout suggests that BTC may retest $49,000 before aiming for higher levels. If $49,000 holds as support, buyers may push for a prolonged rally towards $82,640.
Technical Indicators Supportive of Bitcoin Price
- Exponential Moving Average (EMA): The fast-moving 20-EMA slope can provide suitable support for BTC during pullbacks.
- Directional Movement Index (DMI): The wide gap between the DI+ (blue) and DI- (orange) slopes indicates a strongly bullish overall trend.
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