Bitcoin price dips to $61K, but large holders buy BTC due to bullish chart pattern
- Bitcoin price has been slowly proceeding toward lower boundaries of range to test support.
- Holders with between 100 and 1000 BTC are buying more.
- A falling wedge pattern suggests 20% upside potential for Bitcoin price.
Bitcoin (BTC) price is dropping but hints at a possible recovery as the price action consolidates within a bullish reversal technical formation on the one-day timeframe.
Daily digest market movers: Large holders buy Bitcoin due to bullish chart pattern
Bitcoin price action is leaning toward the south but is confined within a falling wedge pattern. Characterized by two converging trendlines that slope downward as they gradually narrow the price range, this technical formation is encouraging holders with between 100 and 1000 BTC balances to buy more.
Bitcoin supply held by entities with balance 100 to 1K BTC
There appears to be a lack of significant market participation from new buyers, while so-called “hodlers” fail to see this cycle over yet. It is likely that the market could see more grind time between the established trading range.
The move to buy among the entities could mean diversifying their portfolio or averaging down their cost basis by purchasing more Bitcoin during price dips. This strategy can help them reduce their average purchase price over time.
Meanwhile, the BTC exchange-traded funds (ETFs) front continues to shape and accelerate price action. Wintermute, a leading global algorithmic trading firm in digital assets, has announced that it will be establishing its presence massively in Asia, specifically in Hong Kong.
This will come by way of a strategic partnership where Wintermute collaborates with OSL and HashKey to provide liquidity for Hong Kong’s newly-launched spot BTC and Ether ETFs.
Wintermute’s involvement aims to attract both institutional and retail investors by enhancing market liquidity, which is crucial for the ETFs’ operation.
Open Interest, funding rate FAQs
Technical analysis: Bitcoin price primed for a possible 20% upside potential
Bitcoin price is still grinding in a falling wedge pattern, with potential for a 20% rally upon successful breakout. However, based on the outlook of the momentum indicators, we could see more downside before this happens, ideally before BTC fills the bullish reversal technical formation.
The Relative Strength Index (RSI) continues to record lower lows since around mid-March, hinting at further downside momentum. The position of the Awesome Oscillator (AO) in negative territory also accentuates this stance, typically signifying a bearish trend in the market. These show that the downward trend may persist in the near term.
Accordingly, Bitcoin price could continue the fall to the $60,660 support level or lower, providing another buying opportunity in the $50,000 range.
BTC/USDT 1-day chart
On the other hand, if the $60,660 level continues to hold as a support, Bitcoin price could make a bounce here before a break above the upper trendline of the pattern. A decisive candlestick close above $63,871 following the breakout could set the tone for a 20% upswing to the profit target of the falling wedge at $76,166.
In a highly bullish case, Bitcoin price could extend to take back the $73,777 peak.