Bitcoin may have seen its deepest correction since FTX crashed in November 2022, falling more than 20% from its all-time high of around $74,000. However, Glassnode analysts, while sharing their preview on X, remains cautiously optimistic.
Bitcoin is down 20% from March highs, but Glassnode is bullish
Glassnode notes that Bitcoin’s “macro uptrend still appears to be one of the most resilient in history” and that while corrections have been made, they are relatively superficial. With this position, the blockchain analytics platform confirms that the coin has improved with increased liquidity, reducing volatility.However, for bulls to find support and prices to recover, the triggers would come from fundamental factors. While price action structure can offer support, price catalysts are, as history shows, tied to market events.
As Glassnode notes, the robust, bullish macro trend for Bitcoin has reduced volatility, helping to maintain the bullish trend. The increasingly superficial corrections, as the blockchain analytics platform notes, indicate a more mature market supported by more institutions.
Whales piling up as institutions eye BTC
Confidence remains high. On-chain data reveals that a whale took advantage of the relatively low prices and correction to stack coins.
Over the past week, the whale has purchased over 100 BTC, pushing the amount of coins purchased this month to over 7,257 BTC. This aggressive accumulation suggests that the whale, even at the current multi-year high, Bitcoin may be undervalued.
There could be more tailwinds for Bitcoin on the way. For example, this week, former US President Donald Trump began accepting cryptocurrency donations in the ongoing campaign. This change in stance has been bullish since Trump dismissed Bitcoin earlier.
As this happens, European regulators appear open to approving Bitcoin as an investable asset within UCITS funds. If this goes through, it could unlock billions more in Bitcoin from European institutions.
This move is huge, considering that banking giants like Morgan Stanley and BNP Paribas are already exploring ways to allow their clients to invest in BTC.
Related reading: Bitcoin’s Short-Term NUPL Value Goes Negative, What This Means for Price
From a macro level, theIncreasing M2 money supply in the US, amid concerns from the US Federal Reserve regarding high inflation, could further support demand for Bitcoin. BTC, like gold, is considered a safe haven, a hedge against inflation as its supply is designed to be deflationary.
