Bitcoin (BTC) continued to consolidate around the same level for the past 24 hours. That may be a good sign, as long as the price doesn’t fall much further. However, there is still a great deal of fear and uncertainty in the market. Still, there is hope that bitcoin holds up here and may recover soon.
Bitcoin Price Consolidates In Shrinking Range
From bitcoin price began to fall sharply on Tuesday and continued on Wednesday. In the end, the price even briefly dipped below $43,000. Since then, the price has been consolidating around the current price of $43,500.
Yesterday afternoon, bitcoin fluctuated between USD 43,150 and USD 43,850, but that range is getting tighter. Last night, bitcoin fluctuated between USD 43,375 and USD 43,750. This means that the price forms a symmetrical triangle again. At the time of writing, the price comes in at $43,500 on KuCoin and €40,000 on Battle
#Bitcoin Bear Pennant forming (1 Hour): pic.twitter.com/RuDgYZIoLY
— Matthew Hyland (@MatthewHyland_) April 8, 2022
Bitcoin is currently consolidating at a somewhat sensitive point. We prefer not to see the price fall much deeper, otherwise it will start at a bearish appear to be a trend reversal. Deeper than the $41,700, where the 50 days and 100 days simple moving averages come together, so we hope not to see. Should bitcoin begin a recovery before the weekend, the price should recapture the $44,400 to $45,500 range as follows.
$ BTC showing some signs of life after TradFi closed slightly green There is a bull div in OBV with MACD and RSI turning up Predator is teal and vwap reclaimed. Best to hold $42,700 to the downside To the upside need to clear $44,400 followed by $45,500 https://t.co/O9M2RVLofW
— Decentrader (@decentrader) April 7, 2022
Rising Fear, Inflation and DXY
This week’s decline is largely the result of a new dose of fear surrounding the monetary policy of the US central bank: the Federal Reserve. It looks like the Fed will tighten up its policy from May to counter rising inflation, which is creating a lot of uncertainty in stock markets with which bitcoin still has a high correlation. The war in Ukraine is still causing a lot of uncertainty in the financial markets.
In addition, the dollar index (DXY) had a strong week and that usually turns out negative for bitcoin. In fact, the DXY hit its highest price in nearly 2 years yesterday, and analysts report that the chart is bullish looks. So that could portend even more bad news for BTC. That said, it is also a good sign that BTC is currently holding up as DXY rises. That shows that there is a lot of support here.
There it is, now we’ll check off the 2nd target box on $DXY drawn months ago.
– Daily, Weekly, & Monthly RSI look bullish
– Daily, Weekly, & Monthly MACD look bullish
– Above 200 W MA since November
– May 2020 last time it was this highRisk off for #bitcoin, #crypto, $stocks? https://t.co/jzaCOb4fIk pic.twitter.com/hMEBrxHgW2
— Jesse Olson (@JesseOlson) April 7, 2022
Positive bitcoin news and accumulation
However, there is also positive news for bitcoin. Strike CEO Jack Mallers made a big announcement during the Bitcoin 2020 event. He announced that Strike is integrating with Shopify so that stores can accept bitcoin payments through the Lightning Network. That’s a so-called layer-2 scaling solution for faster and cheaper transactions. Read more about this in this article on Crypto Insiders.
BTC’s accumulation is also still strong, which is a very bullish sign for the price. For example, On-chain College reports that the supply of BTC on exchanges is now below 13% of the total, the lowest level in more than 4 years.
The Percent of the #Bitcoin Supply held on Exchanges just dropped below 13%, the lowest level in 1,523 days (or 4 years & 2 months). pic.twitter.com/qcc49pj8O9
— On-Chain College (@OnChainCollege) April 7, 2022
Analyst PlanC adds that the bitcoin supply, which has not moved for at least a year, is a new all-time high of 63.46% has reached.
Update: The #Bitcoin supply that has not moved in at least 1 year, just set a NEW All-Time High at 63.46%!
Once breaking previous all-time highs on this metric a significant price uptrend has always followed over the next few months. #Crypto pic.twitter.com/cp3PoMGGSm
— Plan©️ (@TheRealPlanC) April 8, 2022
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