Bitcoin [BTC] wavers in April, can whales inflict a new high in May?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• BTC fluctuated in April 2023 but posted 4.5% gains.
• BTC’s supply tightens as more than 54% remained unmoved for 2+ years.

Despite fluctuations in April, Bitcoin [BTC] ended the month in green. Notably, the king coin made a new monthly high of $31k but retraced sharply amidst macro headwinds. It reversed some of the losses at press time, posting over 4.5% at the end of April. 

Source: Coin360

Is your portfolio green? Check BTC Profit Calculator

In addition, whales have quietly amassed over 64k BTCs as the coin dipped in the second half of April. Can these whale actions inflict a new monthly high in May despite the upcoming FOMC meeting?

🐳 #Bitcoin whales have quietly accumulated again since profit taking above $30k on April 11th. Since this date, as prices wavered and dipped down slightly, addresses holding 100 to 10,000 $BTC have collectively added 64,094 coins back to their bags. 💰https://t.co/Lx3msF58Wo pic.twitter.com/zUQC4BaW6F

— Santiment (@santimentfeed) April 29, 2023

BTC wavered below $30k

Source: BTC/USDT on TradingView

BTC’s press time price level mirrors May 2022 lows. In early April, BTC broke above its $26.8k – $28.6k range but hit an ascending trendline resistance (continuous white line). The trendline resistance prompted profit-taking after BTC surged above $30k, setting it to dip and waver slightly afterwards. 

But bulls have firmly defended $26.8k support, reinforcing the bullish sentiment. As such, bulls could attempt to rally to the ascending trendline resistance near $32.4k. Above the aforementioned resistance, the other obstacles lay at $34.3k and $37.5k. 

On the downside, bulls could try to prevent further drop at $25.25k if the $26.8k support cracks. The March lows of $20k could check any extreme retracement beyond $25k. 

Meanwhile, the RSI retreated from lower ranges – confirming increased buying pressure. However, the volume and OBV dipped slightly and stagnated after mid-March, indicating limited demand in the same period. 

BTC supply continues to tighten

Source: Glassnode

Read Bitcoin’s [BTC] Price Prediction 2023-24

According to Glassnode, 54% of the BTC supply remained unmoved for over two years at press time. It means BTC’s supply is tightening and also captures the long-term bullish prospects of the asset despite recent price fluctuations. 

On the futures market front, the open interest (OI) rate rose from $11.548 billion on 1 April to $11.755 billion on 30 April, at press time. It corroborates a mild bullish momentum in April despite the price wavering in the same period. Will the OI, whale action and tightening supply prop up BTC’s value in May?