BTC’s recent surge relies on hopes for a spot Bitcoin ETF approval, but potential hurdles arise as Bitcoin whales initiate a redistribution phase. On-chain data indicates a notable possibility of Bitcoin retracing towards $37,000.
Reasons Why Bitcoin May Dip to $37,000
BeInCrypto’s Global Head of News, Ali Martinez, observed a 1.10% decrease in the count of entities possessing a minimum of 1,000 BTC in the last three days. This reduction may not indicate a sell-off but implies a reshuffling phase among significant Bitcoin whales.
Increasing selling pressure may soon influence Bitcoin’s price. Martinez suggests that breaching the $43,200 support could temporarily halt the recent bull rally, potentially leading to a Bitcoin price decline below $40,000. “[If you are] anticipating a Bitcoin price correction… The first indicator would be a sustained close below $43,200. If this happens, BTC could be headed towards $37,000,” Martinez said.
Similarly, Santiment analysts urge caution, highlighting a surge in bullish market activity causing widespread FOMO among investors. This trend, they argue, calls for a prudent approach. Martinez, however, mentions that as long as Bitcoin maintains support above $43,200, the odds appear favorable for the bulls.
