Bitcoin (BTC) is back in the most significant consolidation zone, but a new analysis warns that it could still capitulate at the bottom of the “macro bottom.”
April 27 in TwitterMaterial Indicators, an on-chain analysis platform, highlighted the importance of $38,000 in the current price action of Bitcoin.
Bitcoin at the point of control
After fluctuating around $37,700 liquidity on the daily time frames, Cointelegraph Markets Pro and TradingView indicate that BTC/USD has not yet registered a clear one-way movement, as market participants have not decided on the next path.
Macro factors point to further decline in light of the impact of inflation and geopolitical turmoil on stock markets.
At the same time, the signals on the chain are not negative, with huge investments by miners in their business, and therefore, they are attributed to an absolutely high hash rate.
In the short or long term, $38,000 is an important target for bitcoin.
“Since the $20,000 eruption in December 2020, BTC has consolidated in this range more than any other.”says “Material Indicators”.
He added that the “point of control” – essentially the price level with the largest volume – is “exactly” where the spot price is currently attracted.
However, it is not immediately clear where Bitcoin might be headed, given this month’s price trend. Analyzing the 3-day chart, physical indicators are showing bullish and bearish patterns during this week.
These include the 50, 100 and 200 moving averages on the 3-day chart.
“By zooming slightly on the 3-day chart, it is clear that the bearish crossovers between the 50MA and the 100MA led to rallies, and that the interaction with the 200MA could lead to a rally or a breakdown towards the bottom of the macro.” highlights the analyst.
“This week, BTC ticked all these boxes.”
Accumulate missing moving averages
Regardless of the trend, volatility is guaranteed thanks to the next monthly close. As it stands, BTC/USD is set to close the month of April $6000 below its starting point.
Related: Ex-BitMEX CEO Explains How Bitcoin Will Reach $1 Million by 2030
As previously reported by Cointelegraph, the weekly chart produced the first four-period red candlestick from June 2020 through last Sunday’s close.
Meanwhile, two major weekly moving averages are repeating a rare trend that has twice seen Bitcoin drop by 50%.
In conclusion, physical indicators included whales in the analysis. Indeed, the buying and selling behavior of whales at this crucial stage is critical to determining the future course.
“As long as Bitcoin (BTC) is not recovering the major moving averages, these are considered distribution rallies, used to short up or accumulate short positions.”The analyst adds:
“Expect more volatility at the close/opening of the month. At this point, we will be looking for a new proactive signal of the trend on the monthly chart.”
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