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Bitcoin Hits $40,000, Investors Pump Dogecoin (DOGE) After Musk Confirms Twitter Purchase

The cryptocurrency market came under pressure in the early hours of trading on April 25, but a brief burst of bullish price action sparked after media headlines revealed that Elon Musk had struck a deal to buy Twitter for $44 billion.

Data from Cointelegraph Markets Pro and TradingView shows that after falling as low as $38,210 at the start of trading hours on Monday, the price of Bitcoin (BTC) rallied 5.72% to hit an intraday high of $40,366 when the news about the sale of Twitter spread through the news outlets.

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BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what analysts and on-chain data have to say about Bitcoin’s near-term prospects.

Declining foreign exchange reserves point to strong accumulation

The recent bearish sentiment that has dominated the crypto market has been addressed by crypto trader and pseudonymous Twitter user “Phoenix”, who sent The chart below shows the decline in bitcoin held on crypto exchanges, suggesting that this is indicative of a strong period of accumulation.

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Change of net position change for BTC. Source: Twitter

phoenix said

So what makes you think we would be at a distribution point for BTC right now? These simple metrics tell me that we’ve been back at accumulation for months. You need something you may not have: PATIENCE.”

Bitcoin is still bullish after historic macro cycle lows

On-chain data company Whalemap suggests that while the current correction is not over, a “generational low” is looming on the horizon, and as the chart shows, buying these events is typically very profitable for investors.

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Bitcoin realized price by address. Source: Twitter

As can be seen from the chart, the current price of BTC is well above the line that previously marked the bottom of each macro cycle. This can be interpreted in a number of ways – either the downside move that has been dominating the market is unwarranted at current levels, or the bull market outlook is still strong. Alternatively, one could conclude that the market could be in for a real punch in the stomach if the current weakness culminates with a definitive breakout into the sub-$20,000 region.

Related: Bitcoin bears are tightening their grip on BTC now that $40,000 is the new resistance level

Will there be a bullish continuation above $39,610?

A final look at the future of Bitcoin was offered by market analyst Michaël van de Poppe, who sent the chart below, which highlighted $39,610 as a crucial level to break if bulls are to see more upside.

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BTC/USDT 4 hour chart. Source: TradingView

Van de Poppe said:

“Big bullish divergence in bitcoin and rebound from higher timeframes here. Looks poised for a bullish continuation.”

The total cryptocurrency market cap is now $1.859 trillion and Bitcoin’s dominance rate is 41.2%.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.