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The price of Bitcoin is currently on a downwaslope after bulls failed to get it past the technical resistance trendline.
The price of the leading digital currency Bitcoin (BTC) has dipped further and is on its way to a support level at $35K. Since the year began, BTC’s price has been on a downward spiral and even flirted with $33K in the last week of January, amid a falling sentiment for risk assets in the market. Also in January, the market witnessed a $10K Bitcoin plunge between the 20th and 22nd.
BTC recovered slightly afterward and rebounded above $38K, where it encountered resistance once again and entered its current slide. As of press time, the leading crypto is changing hands at $36,400, which represents a 1.3% drop on the day so far. Furthermore, the current price is about $11K off the $47,500 mark where the leading asset began the new year.
BTC’s latest price drop came after bulls failed to breach the trendline connecting the highs attained in November and January. As a result, chart indications show an end to the corrective bounce and resumption of the broader downtrend. Should BTC fail to stabilize its current position at the $35K support, indicators suggest that the coin may slip further. The next support level seen on the 4-hour chart is the $32,933 level last seen on January 24th.
Despite Bitcoin Price Slide, Whales Still Seem to Be in It for the Long Haul
Regardless of BTC’s suggested downward trajectory, long-term holders of the token continue to add to their positions. On the other hand, the short-term bulls are choosing to put a halt to their stake. According to an analyst at GlobalBlock crypto brokerage Marcus Sotiriou:
“These indicators suggest that as the price has decreased by over 50% over the past few months, whales have been accumulating, whilst short-term holders capitulating.
In fact, analysts say that the best-case scenario for BTC short-term bulls at the moment is a lengthy consolidation.
The “balance on exchanges” metric by analytics firm Glassnode, noticed a trend. According to Glassnode, BTC wallets on crypto exchanges are holding progressively fewer amounts of the token. As of July last year, the total BTC amount hit 2.7 million before falling to the 2.56 million mark in October. This week, the number further dropped to 2.52 million, a level that was last seen in April when BTC was at its then-record high. Also weighing in on this trend, GlobalBlock’s Sotiriou said:
“The percentage of bitcoin on exchanges continues to decrease. Since the all-time-high at $69,000, Glassnode shows that 42,900 Bitcoin has left exchanges.”
Sotiriou also pointed out that most of the recent BTC flows were from new coins or those recently acquired by holders.
The overall crypto market cap now stands at $1.729 trillion, with BTC accounting for 41.1% of that number.