Bitcoin (BTC) fell into the Wall Street open on April 5 after briefly passing $47,000.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader shows importance of 200DMA for Bitcoin
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD encountering downward pressure as financial markets opened Tuesday.
The pair was thus more or less at the same level as 24 hours previously, with the intervening period seeing volatility both up and down.
Amid an overall lack of direction, traders and analysts were waited to see where the largest cryptocurrency would go next.
Popular Twitter account CivEkonom was optimistic, highlighting a CME futures gap at $54,000 as a potential target.
“Talk about compressed and coiling up. Should break up, but you never know,” he said as part of comments on the day.
Fellow account Crypto Rover noted the significance of the 200-day moving average that Bitcoin was attempting to break through. Historically, success in doing so had led to significant price gains, he highlighted.
#Bitcoin Retesting the 200d MA as support for the first time in 190 days.#BTC moved up 66% in the following 43 days the last time this happened! pic.twitter.com/UEifS92BfR
— Crypto Rover (@rovercrc) April 5, 2022
News that MicroStrategy had purchased over 4,000 BTC meanwhile was unable to deliver lasting market strength, despite praise from commentators.
The firm’s Bitcoin treasury thus stood at 129,218 BTC, still by far the largest in the world. As Cointelegraph reported, however, plans by Blockchain protocol Terra meant that its own stash should ultimately surpass that of MicroStrategy and every other Bitcoin whale.
Analyst eyes impressive Q1 close
For trader and analyst Rekt Capital, meanwhile, there was much to celebrate in Bitcoin on higher timeframes.
Related: Bitcoin retail FOMO spiked most since 2017, but BTC price may still be ‘doomed’ — analyst
In a series of tweets Tuesday, he declared Bitcoin’s Q1 candle a successful achievement despite its price at the start of Q2 being practically the same.
#BTC – Quarterly
Bitcoin has Quarterly Closed below the Mid-Range resistance for three consecutive Quarters
But this past Quarter, $BTC managed to form an even Higher Low compared to the orange multi-Quarter Higher Low
Very strong buy-side reaction from blue#Crypto #Bitcoin pic.twitter.com/H7i9bDDjOU
— Rekt Capital (@rektcapital) April 5, 2022
“What’s interesting about BTC right now is that it is in the process of retesting the Quarterly Mid-Range area as support on the Weekly timeframe,” another post read.
Rekt Capital further signalled incoming volatility on the weekly chart thanks to a tightening of the Bollinger Bands volatility indicator.
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Source: https://cointelegraph.com/news/bitcoin-retests-key-level-that-sparked-66-btc-price-gains-in-2021
