Bitcoin has Formed a Historical Bottom! More Upside On Horizon For BTC Price

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Bitcoin has struggled to break past the $48,000 resistance level against the US dollar, but it has reversed gains, however drops below $46,000 may be limited.

BTC soared beyond $47,500, hitting a high of $48,200. The price is currently trading above the 100 hourly simple moving average as well as $46,500. 

BTC Price Analysis

The price of bitcoin has risen above the $47,500 resistance level. BTC traded as high as $48,200, breaking through the $48,000 barrier level. From the $48,200 high, there has been a recent negative correction.

At the time of writing, BTC is trading at $47,212. Near the $47,800 level and the triangular trend line, the next substantial resistance might be identified.

It’s possible that the price will advance towards $48,200 if it successfully breaks and closes above the triangle barrier.

Near $49,000 could be the next substantial upward barrier. Any further gains could drive the price closer to the crucial $50,000 mark.

Bitcoin may fall even more if it fails to break past the $47,800 resistance mark. On the downside, immediate support can be found near $47,000. Near $46,800, the next significant support level can be seen. 

A historical bottom has been formed!

According to on-chain monitoring provider Glassnode, the long-term total cost base of Bitcoin (BTC) has reached an all-time low. Furthermore, since the price dropped from its highs, Bitcoin has seen a fairly healthy redistribution of supply. The bitcoin price has broken out of its consolidation zone this week, rising above $48,000k.

Healthy Redistribution

According to Glassnode’s on-chain statistics, the LTH Realized Cap 30-day Net Position Change Z-Score has reached an all-time low. It shows that long-term Bitcoin cost basis holders have seen a considerable drop in value. Furthermore, a very healthy redistribution of Bitcoin supply is occurring as a result of increased pricing. The new floor prices vary from $38k to $45k.

Bitcoin’s supply has been heavily reshuffled in the consolidation zone between $35k and $45k. Long-term holders are decreasing, while short-term holders are increasing. As a result, Bitcoin holders will have the opportunity to expand their holdings as the price may rise from here.

As a result of the LUNA Foundation Guard accumulating Bitcoin for its stablecoin UST, Russia considering accepting Bitcoin for oil and gas payments, and ExxonMobil planning to mine bitcoin with natural gas, the bitcoin price has surged through the resistance levels.

Furthermore, amid growing inflation and oil costs, whales and crypto influencers such as Michael Saylor and Elon Musk are amassing Bitcoin (BTC) as an inflation hedge and store of value. 

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