BTC Market Analysis: HODLers Keep Buying Despite Massive Correction
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Bitcoin (BTC) prices appear to be regaining stability over the past few hours, following a heart-wrenching selloff. Panic sales have eased off, and weak hands have left the market.
At press time, the benchmark cryptocurrency trades at +4% from its recent plunge to the $42k area.
The recent correction shaved off about 35% from the cryptocurrency, as analysts assert that this is the worst correction since the current bull cycle began in October 2020. According to findings by on-chain analytics provider Glassnode, this trajectory is similar to the 2017 market correction.
Glassnode revealed in its weekly report that while newbies and weak hands have faltered under the selling pressure and fled, whales and mature hands have continued to “buy the dip.”
The on-chain data provider added that the number of non-zero Bitcoin addresses has plunged during the correction, while the number of addresses accumulating more BTC has increased by 1.1% in the same period.
The report also detailed that the supply of coins held by long-term traders has returned to “accumulation mode,” presenting a similar pattern of the 2017 surge. Notably, most Bitcoin traders that purchased in late 2020 or early 2021 have not touched their coins.
Key BTC Levels to Watch — May 18
Bitcoin has posted a healthy rebound from the $42k support and appears to have regained a decent footing above $45k. The primary cryptocurrency continues to trade within our descending channel towards the lower-$40k region.
That said, we expect the cryptocurrency to reach the critical $46,500 level (the top of our channel) soon. A break above this level should open the door for a healthy bullish recovery to the $50k psychological support over the coming days. However, failure to clear this level could stall recovery for BTC and refresh the $42k lows.
Meanwhile, our resistance levels are at $46,000, $46,500, and $47,000, and our key support levels are at $45,000, $44,000, and $43,000.
Total Market Capitalization: $2.11 trillion
Bitcoin Market Capitalization: $842 billion
Bitcoin Dominance: 39.8%
Market Rank: #1
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