The leading cryptocurrency Bitcoin (BTC), with a market value of $ 890 billion, fell below $ 47 thousand after a sharp correction yesterday. After the drop, BTC is trying to recover from Monday's lows and is currently trading at $47,135.
Bitcoin (BTC) supply on exchanges has reached the lowest level in the last 31 months. Cryptocurrency Platform Santiment made the following statement.
“Bitcoin's supply on exchanges is at a 31-month low. Prices have been volatile lately, but the absence of BTC currently moving to exchanges is a positive sign that there will be no risk of major selling.”
The Bitcoin (BTC) price is already about 40 percent below its all-time high of $69k, and many are comparing the recent market sales to the one in May 2021.
There is a significant difference between the correction experienced in May and the current correction, crypto market analyst Will Clementele said.
"There was a big sale from strong hands in May. But strong hands are buying this time."
Large long positions for bitcoin futures were liquidated in the recent price correction. Also, based on the buy/sell indicator, crypto analyst Willy Woo says that buying bearish is clearly visualized.
“As you can see on the chart, investors are buying Bitcoin from the bottom, but most importantly, there is no sign of another selling wave yet.”
It shows that the fundamentals of BTC on-chain are strong as retail investors face the test of patience and anxiety.
The rise of Bitcoin to $ 50 thousand again, according to many analysts, may herald the rally. However, there is still concern about another possible decline or ongoing price recession. According to Will Clemente and technical analyst Pentoshi, Bitcoin will need to pass the $52K, 53K levels to start another rally.