Bitcoin is currently looking good and we are also in an area of consolidation for Bitcoin. We have a lot of crucial on-chain indicators that are sketching a very bullish drawing for Bitcoin. The market is currently looking very healthy, and of course, whatever is good for Bitcoin is good for the entire cryptocurrency market.
Bitcoin has come down by about 15% since it hit its new high of over 61 thousand dollars over a week ago.
One very good sign is that Bitcoin has bounced off the line of diagonal support which means that at this point, the uptrend has stayed intact. Mind you, this is a shorter uptrend but as long as we stay above 52 thousand dollars, the general uptrend that we are in should continue. If that diagonal line breaks, we could sustain a longer connection but this will not still be the end of the bull market.
All this is occurring because we are just consolidating, which is normal as these things occur in the market often. One thing to note is that we could still go lower, and we would still be in an overall uptrend especially without the higher time frames.
Looking at the current situation from a better perspective, Bitcoin has now spent 43 days above 40 thousand dollars and 16 days above 50 thousand dollars.
A year ago, no one even believed that Bitcoin could get to this stage. Looking back at this, you will realize that we have come a very long way from where we were.
Consolidation periods are important because they test us and prepare us for the next leg up in the market by giving time for accumulation, building, and attaining positions while getting prepared for the next big thing.
Whenever we get these short-term downtrends, new investors pay and whales suck up more supply every time.
Yesterday, there were almost 15 thousand Bitcoin bots removed from Coinbase. This is a massive spire compared to the recent volumes on Coinbase.
Coinbase is important because it is the exchange of choice for U.S based institutional investors.
Looking at the exchanges overall, yesterday was the biggest day for Bitcoin withdrawals over the past six weeks. In total, more than 50,000 bitcoin was taken off exchanges yesterday and this clearly shows that people are buying the dip. Whenever we get these dips in the market, big money steps in to buy and accumulate Bitcoin.
