After exhausted bulls were overcome by bears, the cryptocurrency market rallies that started on April 1 met with resistance on April 4. This prompted a market-wide pullback in the afternoon session. Bitcoin (BTC), fell below $45,200.
Cointelegraph Markets Pro and TradingView data show that after the afternoon sell-off fell below $46,000 support, BTC reached a daily low price of $45,133 before buyers came to buy it back above $45,700.
BTC/USDT 1-day chart. Source: TradingView
Here are the views of several analysts on Bitcoin’s short-term outlook and what may be in store for April.
Flipping resistance into support
ShardiB2, a crypto trader and pseudonymous Twitter User, noticed April 4’s weakness in the Bitcoin chart early. She posted the following chart showing that the price was “starting reversing” with the 4-hour candle close to the bottom.
BTC/USD 4-hour chart. Source: Twitter
According to the trader,
“Could it slip to $44,300?” It could be, but I don’t think so. The only thing that is worrying is tax selling.
Matthew Hyland, an on-chain data analyst, posted the following chart that outlines the major support levels and resistance levels for Bitcoin in the current price range.
BTC/USD 1-day chart. Source: Twitter
“Bitcoin wants to turn previous resistance into support.”
Heavy accumulation signs
The latest newsletter from Glassnode discussed insights into which market players have been actively accumulating Bitcoin lately. It noted that “shrimp” and “whales” are the most aggressive accumulators.
Glassnode referred to the whale side by pointing out “large public buyers such the Luna Foundation Guard or MicroStrategy,” who have “reaffirmed their emphasis on Bitcoin as pristine collateral”, and “have commenced serious accumulation in the last two weeks.”
The red highlighted box in the chart shows the whale accumulation. Smaller buyers have been the heavy accumulators (since late-Jan.) with smaller balances (
Trend score for Bitcoin accumulation by cohort. Source: Glassnode
“In general, Bitcoin and its role within the future economy are being viewed by the market with a bit more optimism.”
The 125-SMA hint at a near breakout
Crypto investor and pseudonymous Twitter User Crypto Bull God made one last observation about Bitcoin’s price action. He posted the following chart, which shows the historical price action of Bitcoin relative to its simple moving average (SMA) of 125 days.
BTC/USD 3-day chart. Source: Twitter
According to the trader,
“We can see the importance of this key level. We have greatly appreciated in price once we have broken down below and then broken up above.”
The total cryptocurrency market is now worth $2.124 trillion, and Bitcoin’s dominance rate of 40.9%.
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