Connect with us
Active Currencies 14284
Market Cap $2,526,813,413,354.10
Bitcoin Share 51.72%
24h Market Cap Change $0.50

Bitcoin’s whales are buying the dip and this is what it means

2min Read

Share this article

Bitcoin’s price looks like it is in a rut after the recent crash that began on 5 April. This downswing confirms an ongoing consolidation that, fortunately, forecasts that a short-term uptrend is likely for BTC.

BTC remains bullish but faces an uphill battle

Bitcoin’s price has crashed by roughly 18% since 28 March from $48,238 to $39,141. This downswing came after rejection at the 200-day Simple Moving Average (SMA) at $48,190. Interestingly, the selling pressure was high enough to push the king crypto below the 50-day and 100-day SMAs at $41,993 and $41,386, respectively.

At press time, BTC was hovering below these significant levels and had set up the third higher low and fourth higher high since 20 January. Connecting these swing points using trendlines resulted in the formation of an ascending parallel channel. 

While a breakout from this setup is bearish no doubt, there seems to be one last upswing in the works before a final breakout. For this optimistic scenario, the big crypto needs to pierce through the freshly flipped 50-day and 100-day SMAs and re-flip them into support levels.  

Assuming the buyers make a comeback to push it through the said hurdles, the upside will be capped at the $46,117-barrier. Only in a highly bullish case can investors expect BTC to reach for the $50,000-psychological level. 

This scenario also needs to shatter the 200-day SMA at $48,190 to reach the desired levels. Therefore, investors need to be careful of the risks involved and play it conservatively. 

Source: BTC/USDT on TradingView

Additional arguments

Further lending credence to this outlook is the recent spike in percentage increase in whales holding 1,000 to 10,000 BTC. Their holdings grew from 27.34% to 27.83 from 8 April. While the nearly 0.5% increase reveals a bullish narrative without a shadow of a doubt, this uptick breached a two-month downtrend.  

Therefore, the chances of Bitcoin’s price heading higher in the near future, albeit a short-term outlook, are high.

Source: Santiment

While things are looking up for Bitcoin’s price, a sudden spike in selling pressure could lead to further flash crashes. In such a situation, a decisive daily candlestick close below the $37,033-support level will create a lower low and invalidate the bullish thesis.

Share

Jibin Mathew George is Editor-in-Chief at AMBCrypto. A domain expert in International Relations (European Politics), he has always been a believer in the unlimited possibilities afforded by blockchain and by extension, cryptocurrencies. As someone who has been watching and writing about this space for over 5 years now, Jibin has closely tracked the emergence of cryptos and digital assets as a separate asset class in portfolios world over. A lawyer by training, he previously contributed to the News and Research desk of Diplomacy & Beyond Plus. Before his stint at D&B, he was Editor at ED Times. Jibin also takes a great interest in politics, especially the corresponding effect political decisions and fiscal policy have on the world of finance, with a special focus on cryptocurrencies.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.