For the past two days, Bitcoin (BTC) has been locked between $45,400 and $47,500, indicating a fight between buyers and sellers as both try to establish control over the trend.
In March, according to data from on-chain monitoring firm Glassnode, 100,000 Bitcoin departed exchanges. Only twice in the history of Bitcoin have such significant amounts of withdrawals occurred, the most recent being in March 2020. This does not, however, imply that the price will suddenly rise. Only in the fourth quarter of 2020 did the momentum begin to take up.
In the short term, analysts are split, with some predicting a collapse to $44,800 or possibly $43,000, while others predict a rally to $50,000, the psychological level.
The crypto markets continue to draw new investors as they mature. According to a survey by the Gemini crypto exchange, the number of individuals who bought their first cryptocurrency in 2021 increased by more than 50% in India, Brazil, and Hong Kong. In 2021, more than 40% more new users began investing in Latin America, Asia Pacific, the United States, and Europe.
Could Bitcoin and other cryptocurrencies rebound back from their recent lows and extend the uptrend?
Bears are selling near the 200-day SMA ($48,266), according to the lengthy wick on the candlestick over the previous two days. The bulls have not allowed Bitcoin to drop below the critical support level of $45,400, which is a minor positive.
This tight-range trade, on the other hand, is unlikely to last long. The BTC/USDT pair might drop to the 50-day SMA ($41,689) if the price breaks below the 20-day EMA ($44,467). A move like this could throw the short-term bullish setup out the window.
If the price rises above the present level or the 20-day EMA, traders are likely to continue buying on dips. This might make a break above the 200-day SMA more likely. If this occurs, the pair may rise to $52,000.
On April 3, Ethereum (ETH) breached and closed above the 200-day SMA ($3,487), but the bulls were unable to maintain the gains. This indicates that the bears are attempting to drag the price down in order to catch the aggressive bulls off guard.
Bears will try to drag the ETH/USDT pair to the 20-day EMA ($3,197) if the price falls below $3,411. This is a crucial level for the bulls to defend if they want to keep their positive momentum going.
If the price bounces off the 20-day EMA, buyers will try to push the price over the 200-day SMA once more. If they succeed, the pair might rise to $4,000 in value.
If the 20-day EMA support loses way, however, selling might get more intense, and the pair could drop below the 50-day SMA ($2,895).
23 Jan 2023
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