Today, yet again the cryptocurrency market failed to keep up the bull run and dragged the global crypto market by 1.61% over the last 24hrs trading at $1.89 trillion. At present, the world’s largest cryptocurrency by market cap is experiencing greater volatility around $40,000 levels. The king currency did claim the $41,500 level but couldn’t withstand it.
Bitcoin Price Action
On April 21, the flagship currency spiked ards $42, to $42,988 and now it’s currently fluttering around $40,540. This decreased price action depicts that for Bitcoin $40,100 to $40,500 is the support area and investors can expect a bounce at this level.
If the bulls manage to get back on the bull rally, the Bitcoin price can retest $41,152. Furthermore, if Bitcoin bulls decide to close the four-hour candlestick above the weekly open at $42,137, then Bitcoin price could continue the rally until the price retests the $44,591 level.
Initially, though the short-term outlook appears to be a bearish trend, the three-day chart reveals that the recent decline is strongly above the 200 three-day Simple Moving Average (SMA) at $39,946.
With the current dip, investors can hope for an increased accumulation process which will result in a quick recovery. Market participants can expect a U-turn rallying towards yearly open at $46,198 after smashing the 50-day and 100-day SMAs acting as blockades.
Also Read : BTC Price Forecast: This is Why Things Will Get “Spicy” Soon for Bitcoin
In a more bullish scenario, Bitcoin is expected to spike and retest the 200-day Simple Moving Average at $47,997 and if the bullish trend continues then BTC might even retest the $50,000 psychological level.
On-Chain Analysis
Adding up, according to IntoTheBlock’s Global In/Out of the Money (GIOM) model the immediate rally up to the $44,000 level looks weak. Hence, if there is a blow in buying pressure then the price could easily push Bitcoin towards higher ends.
The investors of “Out of the Money” who purchased nearly 3.4 million Bitcoin at an average price of $47,454 are more likely to be a big threat and might stop Bitcoin’s rally. On the other hand, also according to technical analysis Bitcoin price is about to hit $47,998 or the 200-day SMA
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Source: https://coinpedia.org/bitcoin/bitcoin-traders-placing-long-position/