- Bitcoin has endured an 18% correction over the past two weeks and now sits on top of stable support.
- Ethereum whales are slowly reentering the network as a number of new buy signals pop up in the market.
- Despite the significant losses incurred recently, it seems that both cryptocurrencies are poised to rebound.
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Sidelined investors appear to be taking advantage of a recent downswing to reenter the crypto market. The sudden spike in buying pressure could help Bitcoin and Ethereum prices recover.
Bitcoin Holds Above Crucial Support
Bitcoin suffered a significant correction after rising to a new all-time high of $61,800 on Mar. 13. Its price dropped by more than 18% to hit a low of $50,300 recently. The downswing appears to have been contained by the 50-day moving average on BTC’s daily chart.
That indicator has played a vital role in Bitcoin’s price performance ever since it became came into play on Oct. 9, 2020. It has held through one of Bitcoin’s most significant retracements since that date, serving as a rebound point that drove prices to record highs.
Now that BTC is once again testing the 50-day moving average, a similar market reaction could occur. Bouncing off this support level could push the market value of Bitcoin toward a new all-time high above $70,000. But to do so, Bitcoin would have to slice through a massive supply barrier that lies ahead.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals that the $54,800 level represents a significant area of resistance. Over 1.20 million addresses previously purchased more than 752,000 BTC around this price point.
As such, only a daily candlestick close above this price hurdle will help confirm the optimistic outlook.
It is worth noting that further price appreciation may prove challenging from an on-chain metrics perspective.
Market participants do not seem to be attracted to the…