Bitcoin has seen a significant drop in value, with the price falling by over 5% in a single day. The coin has now dropped below $60,000, a key level that traders have been watching closely. Despite the recent sell-off, some analysts believe that now could be a good time to buy Bitcoin.
One analyst suggests that Bitcoin is entering the “Spring” phase within the Wyckoff re-accumulation model. This model uses price and volume patterns to predict potential price movements. The “Spring” stage is particularly important, as it often precedes a breakout in price with increasing trading volume.
Looking at the daily chart for Bitcoin, it is clear that prices have been consolidating around key support levels. The coin recently dropped below $57,000 before finding support around $56,500. Resistance levels are now seen between $60,000 and $72,000.
Despite the recent drop in price, some analysts remain optimistic about Bitcoin’s long-term prospects. However, others believe that the current sell-off is driven by miner capitulation. The halving of Bitcoin rewards in April has put pressure on miners, leading to some exiting the market. This has resulted in a sell-off of BTC, counteracting the positive trend seen in early 2024.
On the other hand, long-term holders of Bitcoin, such as institutions and whales, have not been selling their coins. This is evident from the high level of “illiquid supply” of Bitcoin, which represents coins that have not been moved for over two years. Overall, the market remains uncertain, with some analysts seeing potential for a rebound while others remain cautious.