Bitcoin Moves Sideways, But Looks Set For A Moon Week
BTC is moving sideways in the daily chart. Source: BTCUSD Tradingview
In the coming days, trader Pentoshi expects BTC’s price to gain enough momentum to break resistance to the detriment of altcoins. As the trader stated, Bitcoin’s dominance could recover in the short term, after dropping below 50%:
I think $BTC is going to break out in a big way this next week. 90 Day range PoC is confluence with all 4hr ema’s both acting as support. Last thing I want to do is be over-exposed on this move.
At the time of writing, BTC trades at $57,654 with a 3.1% profit in the daily chart. In the weekly chart, BTC has a 7.5% profit with sideways movement in higher timeframes.
BTC with small gains in the daily chart. Source: BTCUSD Tradingview
Analyst William Clemente has defended the bullish case for the number one cryptocurrency by market cap. He claims Bitcoin’s base of capital has been increasing with a price action and supply distribution uncommon of local tops. As seen in the chart below, 14.45% of BTC’s supply sits around the $57,000 which acts as important support.
BTC with important support at $57,000. Source: Glassnode via William Clemente
After a few days below the mid-range in the $50,000 zone, Bitcoin has retraced. At the time of writing, BTC trades at $54,137 with sideways movement in the 1-hour chart, approaching correction levels in the 24-hour chart. Certain indicators point to more depreciation, at least, in the short term.
BTC with moderate losses in the daily chart. Source: BTCUSD Tradingview
The crypto market appears to be negatively reacting to statements from the U.S. Secretary of Treasury, Janet Yellen. The top 10 cryptocurrencies by market cap are in the red except for Dogecoin (DOGE) with a 30% profit in the daily chart and Litecoin with a 3.1%, at the time of writing. In the traditional market the hit was just as painful, according to Holger Zschhaepitz:
Bitcoin has been sitting above a critical support zone during the weekend. At the time of writing, BTC trades at $56.662 with sideways movement in the daily chart. In the weekly chart, the first cryptocurrency by market cap has a 12.8% following a $10,000 rally from the higher zone in the $40,000 range.
BTC moving sideways in the daily chart. Source: BTCUSD Tradingview
The bullish sentiment appears to be making a comeback in the crypto market with many investors expecting new highs in the short term. In the meantime, BTC could consolidate at current levels with $54,000 as a critical support zone as there is a large concentration of investors that bought around these levels, as trader Byzantine General showed.
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Investment strategist Raoul Pal has identified that Bitcoin’s fortnightly relative-strength indicator, or RSI, recently fell to levels not seen since the “Black Thursday” crash of March 2020.
The Global Macro Investor and Real Vision Group CEO also noted Bitcoin’s weekly RSI has crashed to levels comparable to that of the corrections produced during “the first part of the 2017 bull run, before Bitcoin hit hyperspace.”
The observation was made after Bitcoin crashed roughly 15% over the weekend, with BTC dropping from $55,000 to find support near $47,250 on Sunday, according to TradingView.
Bitcoin is nearly as oversold as it was in March 2020. pic.twitter.com/ZYHESpW5HG Raoul Pal (@RaoulGMI) April 25, 2021