Bitcoin (BTC) experienced downward price pressure in May. Because the coin failed to break the $30,000 resistance level. This development may be linked to on-chain activities, which showed an increase in the number of Bitcoins sold on exchanges during this period. Meanwhile, popular analyst Rekt noted that BTC is moving similar to the price action in 2015. Here are some on-chain data for BTC and Rekt’s latest comments…
Analyst: Bitcoin may experience major correction like in 2015
An analyst, who continues to increase his followers with long-term Bitcoin (BTC) calls, made new statements. He warns that the crypto king will experience a major correction similar to what happened nearly eight years ago. Rekt says that Bitcoin moves similarly to the price action in 2015, when it retested a cross resistance as support before sparking a bull market.
In 2015, Bitcoin had lost about 38 percent of its value in a month before starting a parabolic rally. According to Rekt, Bitcoin could drop to key psychological support around $20,000 as long as it trades below the $27,000 resistance. Rekt uses the following expressions:
If BTC experiences a 2015-like retest of its macro downtrend, the price could plunge even deeper than we’ve seen so far. BTC failed to reclaim the $28,800 weekly level. And a BTC weekly close below $27,000 would likely lead to more declines below $20,000.
Rekt also points out that Bitcoin is signaling bearish on the daily timeframe. He warns that a head and shoulders (H&S) pattern of $27,000 is currently trading below the neckline. According to the analyst, the failure of BTC to retrace $27,000 as support will likely confirm the reversal pattern.
On-chain data: 300 thousand BTC sold on exchanges
On the other hand, according to CryptoQuant, a data researcher, more than 300,000 BTC purchased one to six months ago have been sold this month. It should be noted that most of these sales were made by people who bought the cryptocurrency between November of last year and January of this year. According to the data explorer, 266,000 BTC entered portfolios between November and January. However, between January and March, investors sold the 78,000 Bitcoins they received in May. According to some, the motivation behind these sales is to make a profit due to the price increase of Bitcoin at the beginning of the month.
Can you provide a more concise explanation for the decline in Bitcoin's price from $30K to $26.6K?
"This decline suggests that approximately 266K bitcoins, acquired between Nov 22' and Jan 23', have been sold from the 1st of May until now."
by @0nchainedLink👇… pic.twitter.com/3pJvz38aLh
— CryptoQuant.com (@cryptoquant_com) May 11, 2023
As we reported on Kriptokoin.com, the price of Bitcoin rose from $ 16,000 to $ 31,000 from November to April. But since April, the cryptocurrency has been making lower highs, possibly due to the selling activity of these investors in May. Bitcoin’s price action in recent days has been important in showing the crypto’s resilience to market fluctuations. Bitcoin slumped as low as $26,800 before recovering quickly and testing support below $27,000. This successful retest of support has once again confirmed Bitcoin’s strength in this price zone.
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