Bitcoin witnessed a sharp slide on Monday, April 4 as bears went after it heavily. But experts reveal that technical analysis and on-chain data indicate a brief correction as investors move to accumulate at every dip. Earlier, the market for cryptocurrency had enjoyed a brief run between April 1 and April 4 before the bear run.
The tough resistance sparked a pullback across the market in the afternoon period. The fatigued bulls were overcome by bear traders who pushed Bitcoin (BTC) to $45,200 and below.
Data from TradingView and CoinTelegraph reveal that with the sell-off in the afternoon session sliding below $46,000, BTC touched an everyday low at $45,133 before the bulls had a run to take it back to $45,700 and above.
An Analysis Of The Short-Term Prospects For Bitcoin
The weakness in the chart and the bear hug for BTC was predicted by trader SardiB2. He posed a chart that noted a reverse trend in price as the 4-hour candle came close to the channel’s bottom.
He tweeted that there was a possibility of sliding below $44,300. But he also said that it would not get any deeper even if we slid down to that figure.
Glassnode, the analysis firm, noted that whales and shrimps were the most forceful accumulators of Bitcoin lately. Glassnode referred to big public buying by MicroStrategy and Luna Foundation Guard, pointing out that they had renewed the emphasis on Bitcoins as perfect collateral and have been accruing them lately.
Glassnode noted that there seems to be a general view of Bitcoin and the future role it has in the economy in a more optimistic light.
Another interesting observation came from another trader who made observations on the past movement of Bitcoin prices relative to the 125-day SMA (simple moving average). He observed the key level was massively important and once it is broken below, its price appreciates majorly.
The cryptocurrency market capitalization is now at $2.124T and Bitcoin dominates with a 40.9% share.