Bitcoin has struggled to flip $30k into reliable support over the past few days. The king coin plunged as low as $23,800 last week amid widespread market turmoil that sent shivers down the spines of many crypto traders. Since then, the bulls have managed to reverse the decline and sparked a fresh increase after forming a strong base above $28,500.
Bitcoin Exchange Reserves Remain at a 3-Year Low
On Friday, the resurgence saw BTC prices momentarily break the $30K resistance zone, alleviating fears of any further capitulation. At the time of writing, BTC/USD is hovering just below $29k, marking a slight retracement from the day’s $30,721 high.
Per the latest bitcoin metrics overview by Cryptoquant, investors are still waiting for the real BTC price bottom. The on-chain analytics firm highlighted that the number of coins held in all exchanges’ reserves is at a 3-year low despite Spot exchanges experiencing a slight increase in inflows.
The data corresponds with insights from Glassnode, which recorded a steady inflow of coins into centralized exchanges that triggered last week’s massive sell-offs.
Cryptoquant further highlighted that investor sentiment is more dominant toward the short position, indicating that the market is over-leveraged. Meanwhile, open interest has increased by $1 billion ahead of the $640M bitcoin options expiry on May 20th.
Coupled with the recent crypto market downturn that took overly-optimistic leverage buyers by surprise, the upcoming BTC options expiry could see prices dive towards last week’s lows.
Is the Real BTC Price Bottom here yet?
Cryptoquant analysis shows that some market participants don’t think the real BTC price bottom is here despite the recent capitulation. According to the metrics, whales and miners are still HODLing as they await to see where the benchmark cryptocurrency heads next.
While some analysts forecast a buildup of bullish momentum could push the BTC price toward $30k, some market participants share a different view. For instance, on-chain monitoring resource Whalemap argues that bitcoin is currently trading in no man’s land and must defend the $24k to $26k support levels to avoid fresh losses.
Whalemap predicts that the biggest bitcoin investors could have a major say in the coin’s next decisive move. If whales provide the much-needed on-chain support under $27,000, they could help avoid a much deeper retracement.
However, should mounting sell pressure unravel this “do or die” zone, the BTC price could slump below last week’s lows, prompting more traders to offload their holdings. The Whalemap statistics support recent CryptoQuant metrics suggesting that last week’s dip to $23.8k may not be the real bottom price for Satoshi’s invention.
Crypto Traders Advised to stack up on Bitcoin
The recent dip in crypto prices has negatively affected market sentiment, prompting one market expert to predict that the next “generational bottom” could be near $22,700.
However, a group of crypto traders who survived the crypto winter of 2018 is encouraging bear market rookies to HODL despite decreasing BTC prices. For instance, crypto veteran Guy Swann advises newbies to ignore the market price and stack regularly on their coin supply.