Made last sunday bitcoin (BTC) another big jump, but the price was unable to continue its recent upward trend for the rest of the week. Bitcoin made a significant dip on Thursday and the price has not yet been able to fully recover. However, the expectations for this week are high again.
Bitcoin attempts breakout, but fakeout
Despite increasing volatility late last week, the bitcoin price generally strong. Last weekend it remained very quiet and bitcoin is starting to move into an increasingly tight range again.
Bitcoin hovered between $45,850 and $47,000 on Saturday. Yesterday, that range shrank to the area between $46,250 and $46,600. Yet, towards midnight, bitcoin suddenly made an attempt to break out and the price briefly shot up to $47,300. However, it turned out to be a fakeout to go. Bitcoin immediately corrected back and then dipped back to USD 45,850.
Bitcoin has recovered slightly in the past few hours, but the USD 46,250 is currently offering significant resistance. The BTC price is at $46,130 at the time of writing KuCoin and €41,830 on Battle.
Many positive signals for BTC price
It is possible that bitcoin will continue to consolidate in this range in the coming days. There is a lot of resistance between this $46,250 and the $47,600 while the price is holding strong. Still, there is a lot of hope for the month of April, because it is historically a strong month for the price.
Analyst TechDev may see a so-called volatility squeeze take place in the coming days with a high chance that the price will break out then:
#Bitcoin in a rare 5-day volatility squeeze.
Only the 3rd in the last 5 years.
Price above neutral line and RSI above 50.
Higher probability this resolves to the upside. pic.twitter.com/ThuK1ylBYL
— TechDev (@TechDev_52) April 4, 2022
Analyst Matthew Hyland reports that bitcoin is on the weekly chart a moving average convergence/divergence (MACD) bull cross makes. That’s a bullish sign for the course and analyst On-Chain College adds that the last time this happened was last summer, shortly before the rally resumed.
Last time this crossed was at the start of the Summer ‘21 #Bitcoin rally that led to an ATH 👀 https://t.co/yyogCWBwQH
— On-Chain College (@OnChainCollege) April 4, 2022
On-chain data supports a possible breakout upwards. For example, analysis firm Glassnode reports that the volume of BTC flowing out of exchanges recently reached a whopping 96,200 BTC per month.
#Bitcoin exchange outflow volume recently hit a rate of 96.2k $ BTC per month.
Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions through history, with most being after the March 2020 liquidity crisis.
Live Chart: https://t.co/k9wM940HCQ pic.twitter.com/836zjf39Nh
— glassnode (@glassnode) April 4, 2022
Analyst PlanC also reports that no less than 63.2% of the circulating BTC supply has not moved for at least a year:
Update: The #Bitcoin supply that has not moved in at least 1 year is now 63.20% (0.25%) away from it’s all-time high of 63.45%.
The last two times this metric broke the previous all-time high, a few months later the next major uptrend began. #Crypto pic.twitter.com/rc4eKqitD0
— Plan©️ (@TheRealPlanC) April 3, 2022
Still, there are signs that the derivatives market may start to overheat again and the open interest increases a little too quickly. Analyst Ali Martinez also reports that as many as 16 whales, with more than 1,000 BTC each, may have sold 46 million worth of BTC in total. That can create sales pressure.
Roughly 16 addresses holding 1,000 #BTC or more have left the network or redistributed their tokens over the past week.
These whales hold more than $46 million worth of $ BTCwhich could significantly increase the downward pressure on #Bitcoin. pic.twitter.com/tyoHJqS9Sq
– Ali Martinez (@ali_charts) April 4, 2022
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Despite volatility and price declines, #Bitcoin is experiencing streaks of 🔵activity growth under the surface (blue lines). Entity counts continue to impulse higher, almost back to mid-May levels.
The long term thesis is unwavering, invigorated by the global shit show. pic.twitter.com/jgWSbYNe7w
— TXMC (@TXMCtrades) April 4, 2022
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