Bitcoin (BTC) has been experiencing downward price pressure in May, failing to surpass the $30,000 resistance mark. This development could be linked to on-chain activities that indicate an increase in the number of Bitcoins sold on exchanges during this period.
According to CryptoQuant, a data explorer, over 300,000 bitcoins purchased between one to six months ago have been sold this month. It is worth noting that the majority of these sales were made by individuals who acquired the cryptocurrency between November of last year and January of this year.
The motivation behind these sales could be attributed to taking profits due to Bitcoin’s significant price increase since investors purchased it. From November 2020 until April 2021, Bitcoin rose from $16k up to $31k; however, since then, it has experienced lower highs possibly due to selling activity from those investors in May.
Despite recent market volatility caused by events such as false rumors about US government selling Bitcoin and higher-than-expected inflation reports released by the United States Federal Reserve System (Fed), BTC held strong at around $27k demonstrating its resilience against bearish pressures.
Bitcoin has tested support levels around $27k several times within the past two months forming a solid bottom while also declining Fear & Greed Index putting back into neutral territory which may concern some analysts predicting further drops below this level. However, despite predictions for potential dips below current prices zones being possible based on technical analysis charts or other factors like news releases affecting sentiment towards cryptocurrencies generally speaking – there appears no immediate cause for alarm among traders/investors alike given how well BTC continues holding steady above key psychological thresholds like aforementioned support levels near ~$27000 USD/BTC.
At present writing time: bitcoin trades at approximately $26.8K with a daily gain rate hovering just above +2%. Whether or not we will see renewed bullish momentum pushing towards breaking through resistance barriers remains uncertain but positive signs exist indicating strong demand at current levels. Bitcoin price has consolidated as the market seeks a new equilibrium after the recent price correction.
In conclusion, despite some volatility in May and predictions of potential dips below $27k support levels from technical analysis charts or other factors like news releases affecting sentiment towards cryptocurrencies generally speaking – there appears no immediate cause for alarm among traders/investors alike given how well BTC continues holding steady above key psychological thresholds such as aforementioned support level near ~$27000 USD/BTC.
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