Bitcoin is slowing down as it moves back to the $30,000. While the top cryptocurrency by market cap records profit over the last week (3%), it could still re-test support lower.
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Bitcoin is trading at $41,300 as of the writing. There has been sideways movement in the last day. While the currency trades within a narrow range, it could soon see volatility increase.
Data from Material Indicators (MI) records short-term resistance as BTC’s price is above its current levels. From $41,300 up to $41,400, there are more than $5,000,000 in requests orders. This may stop the bullish momentum from continuing to lower the price.
On the other side of the trade, there is major support for BTC’s price at $39,000. These levels see the cryptocurrency record $9 million in order volume with more liquidity at lower levels. If it returns to this area, BTC may see a strong rebound.
A pseudonym trader recently pointed out that BTC’s price has seen constant rejection from the 200 Exponential Moving Average (EMA), a level often associated with trend direction for an asset. BTC’s current EMA stands at around $42,000.
Bitcoin has to rise above this price point in order to move upwards and overcome further resistance. The price point could be between $45,000 and $48,000. It is the most important time frame in cryptocurrency history.
The pseudonym analyst is optimistic about BTC’s price capacity to break above its 200 EMA for the 4-hour chart.
$BTCOnce again, we are rejecting the 4H 200EMA. We’ll continue to be in this downward trend as long as the price doesn’t rise above 200EMA.
Although the 200EMA continues to trend down, a break in is likely.
Trade here: https://t.co/VZNADvrnZu pic.twitter.com/NceFuHpJgo
— Daan Crypto Trades (@DaanCrypto) April 20, 2022
NewsBTC reports that Bitcoin recorded a decline in implied volatility over the past 90 days. Arcane Research data shows that this indicator is now at the November 2020 lowest. At that time, the decrease in volatility and BTC’s long period of consolidation preceded a major rally into its current all-time high levels.
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BTC bulls appear to be showing more strength. BTC prices are expected to bounce faster because of the liquidity that is lower than $30,000 The cryptocurrency could now be anticipating a break of its short- to medium-term resistance, which would support the bullish thesis.
David Ellis, an analyst, provides guidance on this. said:
(…) I’ve been staring at the charts for long stretches of time the past week-plus. I haven’t seen dips getting bought up this aggressively since Q4 2020. Although it is too early for me to get excited about dips, this sign is encouraging.
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Due to an increase in U.S. Federal Reserve interest rates, the U.S. Dollar has rallied. Arcane Research discovered that Bitcoin has a negative correlation to the currency. This may indicate greater upside potential for digital assets.
