Bitcoin (BTC) bounced off the $48,200 support area after breaking out of a short-term trading pattern.
BTC has been declining since reaching a local high of $52,088 on December 27 (red sign). The downward movement continued till it reached a low of $45,900 on December 30.
It appears that the shortfall caused a breakout from the ascending parallel channel in which it was trading. However, the support line of the channel has been reclaimed. Therefore, since the lines of the channel are not being respected, it is likely that BTC is following a different pattern.
The bounce acted to validate the $45,800 area as support. This is a key support area and is both a horizontal support level and a 0.618 Fibonacci retracement support level.
The main resistance area is found at $51,500.
exchange balance
The total BTC held on exchange addresses has declined since the beginning of the year. It hit a low of 13.6% on April 14 (black circle), when the price of BTC was close to its all-time high.
Despite initially bouncing back, the indicator continued to decline and hit a new yearly low of 13.4% (red circle). This means that investors can store their coins in cold storage. This is often considered a bullish signal as it shows confidence in the market.
institutional investment
Objective: Bitcoin ETF holdings have been increasing significantly since the beginning of December. This means that institutions are buying the downside despite the price drop, especially at prices between $47,000 and $53,000.
The number of BTC in holdings reached a new high of 30,528 BTC on 14 December. Therefore, institutional interest in BTC is still increasing.
on-chain analyst @wclementell Tweeted several charts that show institutions are more active in the market than retail investors. This is because transfer volumes have fallen between $10,000 and $100,000, while more than $10,000,000 have risen.
This purpose aligns with the chart of ETF holdings.
For previous bitcoin (BTC) analysis from BeInCrypto, click here,