Bitcoin (BTC) saw a severe drop during the week as its price dropped from $58,367 to $44,888 in a matter of days. This dropdown caught most traders off-guard, causing a panic reaction across the board. The Crypto Fear and Greed Index shifted from the extreme greed range into the fear zone, reaching lows of 56.
Many analysts however maintained that the correction was organic and healthy as this was necessary as a “reset” before continuation and also a good opportunity for traders and investors to buy the dip. Traders and analysts are now eyeing major players and investors to gauge BTC’s next move — and so far the reaction is decidedly mixed.
Miner outflows however depict a clear bullish picture. In a Tweet on Friday, Moskovski Capital CEO, Lex Moskovski noted that Bitcoin Miners have begun accumulating coins as opposed to selling, while noting that Feb. 26 was the first day since Dec. 27 when Miners Position change turned positive.
A Twitter user, Bitcoin Archive also stated this in a recent tweet ‘Bitcoin Miners have started accumulating again, for the first time since the 27th of December- Glassnode’.
Max Keiser stated ‘#Bitcoin hash keeps hitting new ATH. It’s a leading indicator. Based on the current number, $77,000 (short-term) is a lock’.
BTC hash rate present value of 179,422,022 TH/s reflects an 18% jump in the last 24 hours.
BTC/USD Daily ChartBitcoin presently trades at $45,709.
Although for now, there is a cautious approach towards Bitcoin trading several counter-arguments are tilting in favor of Bitcoin bulls.
A Twitter user, Marketc indicated this in a tweet: Price swings in $BTC are narrowing and it means it’s getting ready for a bigger move. It’s an uptrend line versus a downtrend line. Which one is gonna give?
A Twitter analyst, PabloASXcobar noted that Bitcoin has formed a hammer candlestick at the bottom of its correction which may signal a trend reversal.
He tweeted:
That’s confirmation! #Bitcoin 1D chart in a 1Y period. Riding that 20 days moving average. Yesterday the price tested it again. One day after – a hammer candlestick has been thrown up at the bottom of the recent bearish move Hammer reversal imminent! Hundred points symbol.
Also, there appears to be good news in regards to institutional accumulation. Ki-Young Ju, the CEO of CryptoQuant, noted that the quantity of BTC in exchange wallets has continued its decline — a sign he believes points to continued institutional demand.
Image Credit: Glassnode, Shutterstock
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