Bitcoin price briefly spiked up close to $45,000, maybe due to a huge trend reversal in a very short time. The crypto space recovered significantly since the beginning of March 2022 and turned most of the assets green. While bulls currently appear to hold the crucial support levels at $40,000, bears appear to wait for the right time to gear up.
As many reasons have fueled the BTC price rally in the past couple of days, the bulls intend to hold the gained levels significantly. Yet the possibility of plunging back to $34,000 is not ruled out completely. The popular on-chain platform Delphi Digital says,
“A revisit to $34,000 is not of out question”
Source: Delphi Digital
Yet the possibility of a quick recovery is on the toes. The holders who accumulated BTC between August and November 2022 have not liquidated their positions. Despite the huge slash from the November high, the holders hold the asset according to Glassnode. Glassnode’s UPRD distribution of coin supply shows the primary distribution coming in from the holders who bought at $60K.
Source: Glassnode
However, some Bitcoin liquidation did happen in the $35,000 to $38,000 range but the majority of the holders appear not willing to cash out in the loss. And therefore, a strong reversal may be fast approaching until these holders hold the asset for long. However, the BTC price has formed a double bottom pattern and is approaching the neckline. Once the neckline is tested successfully, then the possibility of ranging another 18% to 22% is quite likely.
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