Bitcoin has seen a sharp correction in the past 24 hours, dropping to $ 10,400.
Just last week the coin had hit $ 11,200 after some thought it would go up to $ 12,000.
Bitcoin’s weakness is due to legacy markets like the S&P 500 weakening due to a number of geopolitical and macroeconomic trends
Analysts remain optimistic about BTC’s price development despite the recent weakness.
A fund manager notes that there is clear support in Crypto Profit price, which is marked by a critical trend indicator. This trend indicator recently generated a buy signal.
This is important because the last time this specific indicator issued such a signal, BTC was able to rebound by $ 2,500 in about a week.
Critical Bitcoin Bull trend indicator appears
A key Bitcoin trend indicator that last produced a buy-signal before the $ 2,500 surge in July and August has just re-emerged.
Crypto-fund manager Mohit Sorout recently the chart below published after this indicator has turned green just two days ago. That suggests that Bitcoin is on the verge of resuming its rise – or at least ready to enter a period of consolidation.
Chart of the price development of BTC in the last few weeks with analysis by crypto trader and fund manager Mohit Sorout (@Singhsoro on Twitter). Chart from TradingView.com
On-chain analyst Willy Woo also suggests that Bitcoin is on the verge of a bullish trend reversal.
According to him, it is fair to say that a bullish turnaround is imminent, as the number of BTC that have changed hands on the chain has risen sharply recently. He shared the graph that shows that every time this metric has skyrocketed in the past few months, there has been a trend reversal.
“Another impulse from coins that change hands has been completed, the next change of direction in the coming weeks is likely to be upwards. It is very unlikely that we will experience any kind of catastrophic price dumping from here. “
Chart of BTC price movements over the last few months with an on-chain analysis by cryptanalyst Willy Woo
From what the industry now knows, that spike was likely due to MicroStrategy amassing tens of thousands of BTC as reserve accumulation.
Microstrategy is a Nasdaq-listed company that made waves a few weeks ago when it announced a large investment in Bitcoin to hedge against macroeconomic risk.
Long-term on-chain trends are still bullish for BTC
Long-term on-chain trends confirm the view that Bitcoin will continue its rise.
Blockchain analytics firm CryptoQuant has found that 10 out of 11 of its long-term on-chain metrics currently indicate a “buy” or “strong buy” for Bitcoin.