In the past few days, the experiences of BTC holders have been nothing short of a rollercoaster ride, as the token plunged 12.12% to $93,956 from its historic ATH of $108,135 just 6 days ago. With a hefty market cap of $1.86T and a significant 24-hour volume of $59.68B showing active trading, this correction phase is not without some useful opportunities.
This pullback comes as the Federal Reserve maintains its hawkish stance on rates, while Bitcoin ETF outflows add selling pressure to the market. These dynamics have active traders closely monitoring support levels, with volatility creating potential entry points for those watching the market.
MicroStrategy’s $560M Bitcoin Bet Defies Market Correction
Even as Bitcoin experiences a slight technical correction, major institutional players continue their aggressive accumulation strategy of the token. MicroStrategy’s latest acquisition of 5,262 BTC at an average price of $106,662 demonstrates institutional confidence in the asset, despite current market conditions. The firm’s total holdings now stand at 442,262 BTC, with unrealized profits exceeding $14.57 billion. This persistent accumulation, marking seven consecutive weeks of purchases, suggests strong institutional belief in Bitcoin’s long-term value proposition.
Adding to the institutional contributions, Japanese firm Metaplanet enters into the scene with a 619.7 BTC purchase (approximately $60 million). This strategic approach, including plans for Bitcoin-backed financial products, indicates a maturing market infrastructure that could provide price support for BTC in the long term.
BTC Technical Analysis and Price Action
Going by the price action in the trading chart, Bitcoin trades within a descending channel, having recently experienced a 7-day price correction. The asset is currently testing crucial support levels around $93,500, with the RSI hovering at 37.96, approaching oversold territory but not quite there yet. This suggests potential room for further downside before a possible bounce.
Similarly, the MACD indicator displays a bearish crossover, with the signal line (-239.53) crossing above the MACD line (-265.22), indicating strong selling pressure in the short term. However, historical patterns suggest such technical setups often precede significant price reversals, especially when coupled with strong institutional buying.
Monthly Trading Chart For Bitcoin. From TradingView
Price Prediction and Trading Outlook
According to the current technical setup and backing from big players in the crypto space, Bitcoin appears poised for a potential reversal in the coming weeks. The aggressive accumulation by major players like MicroStrategy and Metaplanet typically creates a strong price floor, even amid technical corrections. Merely looking at the technical indicators, traders may lean more towards caution but the token’s strong fundamentals give something to cling onto.
Traders should keep their eyes peeled for a potential bounce from the current support level, with initial resistance around the $97,500 mark. This easily corresponds to the middle of the descending channel. If the token breaks above this level, there could be a potential rally towards, and maybe past, its recent ATH. However, if current support fails to hold, we might see a brief dip toward the $90,000 psychological level before a stronger recovery attempt.
Volatility may continue to linger in the short term, but the strong institutional backing suggests that current price levels could represent attractive entry points for position traders with a medium to long-term horizon. The key will be managing risk appropriately while maintaining awareness of both technical signals and institutional flow dynamics.
