Bitcoin prices are finally stabilizing after a bloody weekend, as panic selling eased and weak hands appeared to have been shaken off.

At the time of preparing this article, Bitcoin is trading at just over $45,100, up 5% from the same time yesterday.

The lowest level during this correction was the short drop to $42,000 which occurred yesterday May 17th and this level continued as support twice.

Bitcoin has fallen and corrected 35% in the past 35 days, making it the largest correction in the current rally and almost similar to the correction of the 2017 bull market according to the results and analysis prepared by the “Glassnode” platform.

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Using data from Glassnode’s weekly report, analysts confirmed that new entrants to the market gave up and sold at a loss while long-term holders of Bitcoin continued to buy the dip.

Panic and Selling Weak Hands:

Glassnode analysis indicated that the number of non-zero bitcoin addresses decreased during this correction, but the number of addresses backlog increased 1.1% since the last drop.

And what was stated in a report Glassnode:

In almost complete contrast:

The new entrants seem to be panic selling, while the long-term holders are buying the dip, accumulating their coins and buying cheaper.

Glassnode added that supply held by long-term holders has returned to an accumulation mode, a pattern that again resembles the previous peak of 2017.

Bitcoin buyers who bought their coins in late 2020 or January 2021 have yet to spend it.

While those rocked by Elon Musk’s Twitter speech over the weekend may have sold at a loss, those more experienced in the cryptocurrency markets have seen these drops time and time again.

Where and during the rise of Bitcoin there is a need for healthy corrections, first to get rid of excessively leveraged trades and secondly to get rid of weak hands so that a more natural uptrend can resume in the long term, as “Glassnode” pointed out by saying:

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There are strong signs that short-term bitcoin holders are driving a panic sell, but long-term bitcoin holders are stepping in to buy the dip and their confidence is largely unshakable.

Bitcoin Price Predictions:

Most of the panic selling appears to have ended, as Bitcoin found strong support in the lower $40K range.

Prices have returned to their levels in early February, but are still 367% higher than the same period last year, so anyone who bought in 2020 will still be profitable by a large margin.

A big sell-off could push prices back to the support level at the 200-day moving average which is currently at $40K.

On the other hand, Bitcoin needs to break the 46,750 resistance to make more progress and upside.

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