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April 27, 2022

Bitcoin recovering from its 6-week low point?

According to data from Cointelegraph Markets Pro, and TradingView, the largest cryptocurrency, Bitcoin, was trading at $39,268 on Bitstamp at the time of writing, a 2.5 percent increase.

As soon as Wall Street trading began on April 26, Bitcoin followed stocks downhill once more, reaching $37,700 twice.

Despite the fact that that location was already on the radar as a potential liquidity grab, others were skeptical that the sell-off was complete.

Popular trader Kaleo contended that the recent reprieve was really a dead-cat bounce, and that the real suffering would begin when momentum stopped.

The price has recovered from the $40K mark and is attempting to break over the 100-day moving average. If a bullish breakout happens, the 50-day moving average and the $42K zone will provide substantial resistance, followed by the 200-day moving average.

If demand fails and the price is rejected by the 100-day moving average, the $36 level will be the first important support. Bitcoin’s price has been unable to close below this level for several months, and it’s a critical milestone for the bulls to defend.

Despite the fact that risky assets have been punished in recent days, Bitcoin hodlers are focused on the long-term optimistic predictions and disregarding the short-term downturn. According to Glassnode statistics, Bitcoin’s supply that has not moved in at least a year has surpassed 64 percent for the first time ever.

Bitcoin fell just below immediate support level of $38,536 on April 2, but the bears were unable to capitalize on their advantage. The extended tail on the day’s candlestick indicates heavy buying around the ascending channel’s support line.

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Buyers will now try to push the price over the 20-day EMA ($40,974). If they succeed, the BTC/USDT pair might reach $43,000.

If the price falls below the 20-day EMA, it indicates that sentiment is still bearish and bears are trading on rises to strong upward resistance levels. The pair might then fall to the channel’s support line.