The cryptocurrency market has seen a turbulent period of trading in the last week, affecting Bitcoin (BTC) price in particular. The world’s leading cryptocurrency experienced a 10% drop in value after reaching the $30,000 mark, the highest level since January 2020. Despite this patch of bearishness, experts suggest that the Bitcoin bulls are far from giving up, and that the Bitcoin price may soon rebound to the $30,000 mark.

On-chain metrics appear to suggest that Bitcoin's plummeting value is closer to bottoming out than a further plunge. In particular, investor's sentiment appears to have been hit by the US banking crisis, increasing the likelihood of a redistribution of funds from the altcoin sector to Bitcoin. Weighted Sentiment measures expectations by observing positive and negative messages across social media, and Bitcoin's weighted sentiment reached its lowest over the past two months.

Whales, investor clusters holding anywhere from 100 to 1000 BTC, may be key to the resurgence of Bitcoin. On-chain figures show that whales paid an estimated $540 million to purchase 20,000 BTC amidst this recent period of decline. Such high-volume investments indicate an optimism in the future of Bitcoin and possibly an upcoming bull run.

Finally, IntoTheBlock’s In Out of Money Around Price data gauges the intensity of support and resistance along Bitcoin's current price trajectory. Calculations show that a potential decline in price should not drop below $27,000, as this resistance is held up by 61,000 addresses and 13,500 BTC. If the bears become too strong, however, Bitcoin could drop to around $24,500 before the bulls can regroup.

All in all, a combination of increased optimism amongst whales and robust support theories have experts maintaining confidence in a $30,000 Bitcoin rebound. It remains to be seen whether Bitcoin will uphold the expected momentum to reach this mark, but investors should take caution in the meantime and evaluate their current risks.



Other News from Today