Bitcoin (BTC) Market Shows Signs of an Upcoming Price Rebound

The Bitcoin market is currently trading over 30% below its all-time high. February saw a significant 17.5% drop

The Bitcoin (BTC) market is currently trading over 30% below its all-time high, having experienced a significant 17.5% drop in February alone. This follows a modest 2.19% decline over the previous months. Over the past seven days, Bitcoin has fallen by 3.2%, yet in the last 24 hours, it has shown a slight recovery, rising by 0.9%.

But could a price rebound be on the horizon? On-chain analysis suggests a shift in investor behavior that might hint at an upcoming recovery.

A key indicator—the Short-Term Spent Output Profit Ratio chart and UTXO Age Band (1-3 months)—reveals that short-term Bitcoin investors are selling less. This metric tracks Bitcoin that hasn’t moved for one to three months, offering insights into whether recent buyers are holding or offloading their assets.

According to crypto analyst Ali, the data suggests that these short-term holders are showing confidence in Bitcoin’s future prospects.

This observation comes as market analysts anticipate a significant shift in Bitcoin’s trajectory. Experts, including Axel Adler Jr., have noted that long-term holders have resumed accumulating Bitcoin—a bullish sign.

Adler even went so far as to speculate that if the U.S. Federal Reserve or the Trump administration provides positive signals, Bitcoin could surge to an astonishing $130K.

Several technical indicators also support the possibility of growth:

* Despite the recent price drop, the 50-week moving average (SMA) has remained intact since March 2023.

* After a brief fall below the 50-week SMA in February, the price quickly recovered, remaining above the SMA for the past 14 weeks.

* Furthermore, the lower time frames, such as the 4-hour chart, indicate a potential bullish divergence in the MACD indicator, which could signal an upcoming uptrend.

Analysts suggest that the reduced selling pressure could help stabilize Bitcoin’s price in the near term.

April: A Historically Bullish Month

Bitcoin’s recent 3.08% rise yesterday has further fueled optimism.

Historically, April has been a strong month for Bitcoin, showing positive momentum at least nine times since 2011. This compares favorably to six bullish instances in March and eight in May.

With historical trends and investor behavior aligning, could Bitcoin be gearing up for its next big rally? The coming weeks will be crucial in determining its next move.

On-chain data suggests short-term BTC investors are selling less, indicating confidence in a potential price rebound.

Historically, April has shown positive momentum for BTC in 9 out of the last 13 years, making it a strong month for potential gains.