The cryptocurrency market rally that began on April 1 met stiff resistance on April 4, triggering a market-wide pullback during the afternoon session after exhausted bulls were overwhelmed by bears who managed to sink Bitcoin (BTC) below $45,200 to press.
Data from Cointelegraph Markets Pro and TradingView shows that after the afternoon sell-off tumbled below the $46,000 support, the price of BTC hit a daily low of $45,133 before buyers emerged to bid it back above $45,700.
Here’s what several analysts are saying about the near-term outlook for Bitcoin and what could be in store for April.
Turn resistance into support
April 4th weakness on the Bitcoin chart was spotted early on by crypto trader and pseudonymous Twitter user ShardiB2, who Posted The chart below notes that its price “started to reverse” with the 4-hour candle approaching the bottom of the channel.
The dealer said
“Could we slip to $44,300? Possibly, but if so, me [don’t] I think it’s getting deeper, the ONLY thing to worry about is maybe the tax sale, I’ve seen a few last year…”
A more general explanation of the current price action has been offered by on-chain data analyst Matthew Hyland, who Posted The chart below shows the key support and resistance levels for BTC in its current price range.
“Bitcoin is attempting to turn previous resistance into new support.”
Signs of strong accumulation
Insights into which players in the market have been most actively accumulating bitcoin recently were discussed in the latest newsletter from on-chain analytics firm Glassnode, which noted that “shrimp and whales are the most aggressive accumulators of recent times.”
On the whale side, Glassnode pointed to “major public buyers like the Luna Foundation Guard and MicroStrategy” who are renewing their “emphasis on bitcoin as a flawless security” and “began serious accumulation over the past two weeks.”
This accumulation of whales can be seen in the box highlighted in red on the chart below, while smaller buyers “have been the strong accumulators since late January, with the smaller balances (<1 BTC) being the most aggressive (green zone).
“In general, the market appears to be viewing Bitcoin and its role in the future economy with some renewed optimism.”
125-SMA indicates an imminent breakout
A final “interesting observation” about Bitcoin’s price action was brought up by crypto investor and pseudonymous Twitter user Crypto Bull God, who Posted The chart below shows the history of BTC price action relative to its 125-day simple moving average (SMA).
The dealer said
“We see how important this key level is. Once broken down and then broken up again, we have increased the price massively.”
The total cryptocurrency market cap is now $2.124 trillion and Bitcoin’s dominance rate is 40.9%.
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.
https://cointelegraph.com/news/signs-of-bitcoin-accumulation-suggest-btc-s-dip-to-45k-will-be-short-lived Signs of Bitcoin accumulation suggest that BTC’s drop to $45,000 will be short-lived