Key Takeaways:
- Bitcoin (BTC) dropped below $40K and consolidated sideways since
- Digital asset's daily chart flashes contradicting technicals
- Whales could be 'buying the dip', which holds a bullish flag for BTC
YEREVAN (CoinChapter.com) – Bitcoin (BTC) traded just below the $40,000 line in Wednesday’s European session after two days of sideways consolidation. The flagship cryptocurrency halted the 10% weekly plunge but flashed conflicting technicals on the charts.
Daily chart analysis
Bitcoin’s daily price action formed a setup dubbed the Rising Channel. It entails two parallel trendlines that push the asset’s value higher while the price action retests both margins of the Channel. The BTC/USD graph hit the setup’s support on Apr. 11, after the plunge mentioned above.
Thus, as the pattern remains relevant, the next expected move is a possible 20% upside move toward the resistance. However, other technicals point in the opposite direction. For example, the lowering trading volumes in the previous three days could be insufficient to fuel the said price surge.
Also read: Bitcoin beats Apple, Tesla as most recurring buy asset for 2022.
Additionally, the trend-based Moving Average Convergence Divergence (MACD) oscillator printed red bars on the histogram with no bullish crossover in view.
The looming Death Cross between the 20-day exponential moving average (EMA-20) and EMA-50 could dampen Bitcoin’s upside attempts. The formation occurs anytime a short-term MA crosses below a long-term MA (EMA-50). It suggests a bearish phase ahead for as long as the EMA-50 remains dominant.
Thus, if the bearish factors prevail, Bitcoin could fail to get back above $40,000 in the upcoming sessions. Notably, the leading digital asset’s price action greatly depends on a flurry of macroeconomic factors and the Fed’s hawkish policy to fight the ever-growing inflation.
Also read: Inflation hits 8.5%, crushing 'transitory' hopes – what about the crypto market?
Furthermore, the analytical platform Santiment spotted a heightened activity among Bitcoin whales, i.e., accounts with over $1 million worth of BTC coins.
Bitcoin whales on the move?
Santiment noted that the number of BTC transactions per day involving over $1 million has been steady throughout the week. Additionally, the platform stated that such spikes typically indicate an upcoming price surge. If so, Bitcoin could erase its “April’s retrace,” commented Santiment.
Also read: EU hits Russia crypto wallets in another round of sanctions.
For example, Romanian consulting company C15 Capital revealed a whale wallet gobbling up $1 million in Bitcoin “every day, regardless of price.” The account’s assets have been valued at $426 million.
In detail, cryptocurrency whales, who own millions of dollars in Bitcoin, have the power to sway market sentiment. Their activities impact the demand/supply balance, influencing the price action.
