Key Takeaways:
- On-chain demand for Bitcoin is returning, claims an analyst, but futures market remains unaffected.
- BTC prices struggle to move decisively above $40,000.
NEW DELHI (CoinChapter.com) — On-chain data indicates demand for Bitcoin (BTC) is returning to the markets, crypto analyst Willy Woo wrote in his report ‘The Bitcoin Forecast.’
The analyst also noted that the futures market remains unmoved by BTC’s growing demand. Moreover, the report highlighted that Bitcoin whales are selling, indicating that even large investors are falling prey to the market’s current bear run.
But, Woo stated the whale sell-off was likely a part of the transitional phase of the Bitcoin market. He further added that holder demand has grown over the last couple of days. From the data available to the analyst, it seems hodlers are entering the market strongly.
Also Read: 3 reasons why Bitcoin bulls should wait for a dip toward $30K to buy BTC.
However, the Bitcoin futures market continues to go down. In detail, a futures contract allows traders to gain exposure to cryptocurrencies without holding the underlying crypto by speculating on the token’s future price.
Rising holder demand negates the effect of the falling futures market for Bitcoin, Woo noted. He added that BTC prices have nearly always responded positively ‘when hodlers were in significant accumulation strength.’
The analyst also highlighted that buyers are moving to buy BTC at low prices, indicating a hodling mentality amongst buyers. Sustained buying could lead to the end of the ongoing bear season, but Woo also considers it vital that demand increases in the futures markets.
Futures markets now play a significant impact to the long term demand and supply, something that was not so true only a year ago
Willy Woo said
Bitcoin Price Chart
Bitcoin prices closed the week ending Mar 13 down by 1.69%, with long upside wicks on the weekly candles indicating strong selling pressure for BTC near the top of each relief rally.
However, the bulls are also fighting back, with Mar 15 witnessing a strong brawl between the two sides, as evident by the long downside wick.
BTC has immediate resistance from a confluence between its 26-day exponential moving average (white wave) and 50-day MA (purple wave) near $40,000. Therefore, the digital asset would have to flip its immediate resistance before challenging resistance near $41,400.
Finally, Bitcoin’s 100-day (yellow wave) MA line forms resistance near the $43,200 mark.
Conversely, if BTC fails to recover, the token has immediate support near $38,500. Moreover, marketwide profit booking could further push down prices, bringing support near $37,300 into play. Finally, BTC could touch $36,000 before recovering if the bear run continues.
Also Read: Inflation boils down Indian household earnings — have they heard about Bitcoin?
Meanwhile, trend-based momentum oscillator MACD is providing bullish signals for Bitcoin. However, bars on the MACD histogram, which charts the difference between the MACD line (difference between the 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD), are contracting.
As such, BTC’s MACD line is moving up towards its signal line, indicating increasing bullishness in Bitcoin’s price momentum.
At the time of writing, BTC was trading at 39,410, down 0.64% on the day.
