Bitcoin price is down 1.85% over the last 24 hours and currently trades 17% below its all-time high of $73,835 reached on March 14.
Despite this performance, the technical setup, whale activity and on-chain data show that Bitcoin traders believe a trend reversal toward news highs could be in the making.
Bitcoin price retests key support areas
Data from Cointelegraph Markets Pro and TradingView shows Bitcoin price oscillating between $60,648 and $62,800 over the last 24 hours.
Bitcoin’s monthly chart shows the current price range is retesting an area that acted as a resistance when the BTC hit previous all-time highs, as observed by popular analyst Rekt Capital.
According to Rekt Capital, this area is now acting as support for BTC since last month’s halving sell-off did not pull the price below this range.
“On the monthly timeframe, Bitcoin is still retesting the old All Time High major resistance area (red) as new support (green).”
Fellow analyst Moustache made the same observation, sharing a BTC/USD three-day chart showing that the price was trading at a level close to the previous all-time high.
According to Moustache, this has happened only twice in the past—in 2017 and 2020. In both cases, previous all-time highs supported Bitcoin’s price, after which the coin went on a parabolic uptrend, hitting new record highs.
In another X post on April 25, Moustache commented on a similar set-up on the monthly chart, saying that BTC was going higher after retesting the line.
“After reclaiming the line in 2012, 2016 and 2020, Bitcoin was just getting started. This will go much higher.”
Whale accumulation backs Bitcoin’s potential upside
Responding to the market’s drawdown over the last few days, Bitcoin whales took advantage of the entry into the “prime buy zone” and bought more BTC in the dips, according to market intelligence firm Santiment.
The analytics firm noted that addresses holding more than 1,000 BTC have “made some accumulation moves over the past 24 hours” as BTC ranged tightly between $61,000 and $64,000.
In a May 9 post on the X social platform, Santiment said,
“Wallets with 1K-10K $BTC have collectively accumulated ~$941M worth of coins, rebounding to their highest holding level in 2 weeks. ”
This means large Bitcoin investors are “showing signs of confidence despite price drop to $62.000,” the on-chain data provider explained.
Overall, this is a positive sign as continued accumulation signals bullish sentiment among this cohort of investors.
Declining Bitcoin balance on exchanges
Data from on-chain metrics analytics firm CryptoQuant shows that BTC balance on exchanges reached a five-year low of 1.927 million BTC after dropping 6.54% over the last 90 days.
Decreasing BTC balances on exchanges simply means investors could be withdrawing their tokens into self-custody wallets, indicating a lack of intention to sell in anticipation of a future price increase.
