Bitcoin is consolidating at a sensitive point, are the bulls or bears leading? » Cryptocurrency experts

Bitcoin (BTC) has continued to consolidate around the same level for the past 24 hours. That can be a good sign, as long as the price does not fall much further. However, there is still a lot of fear and uncertainty in the market. Still, there is hope that Bitcoin will stay here and recover soon.

Bitcoin Price Consolidates in a Contraction Range

The bitcoin price started to fall sharply on Tuesday and continued on Wednesday. In the end, the price even briefly dipped below $43,000. Since then, the price has been consolidating around the current price of $43,500.

Yesterday afternoon, bitcoin fluctuated between $43,150 and $43,850, but that range is narrowing. Last night, bitcoin fluctuated between $43,375 and $43,750. This means that the price forms a symmetrical triangle again. At the time of writing, the price is $43,500 in KuCoin and $40,000 in Bitvavo

Bitcoin is currently consolidating at a somewhat sensitive point. We prefer that the price does not fall much more, otherwise it will start in a bearish It seems to be a change in trend. Deeper than the $41,700, where the 50 days and the 100 days simple moving averages come together, so we hope not to see. If bitcoin starts a recovery before the weekend, the price should recover the range of $44,400 to $45,500 as follows.

Growing fear, inflation and DXY

This week’s drop is largely due to a new dose of fear surrounding the monetary policy of the US central bank – the Federal Reserve. It seems that the Fed will tighten its policy from May to counter rising inflation, which is creating a lot of uncertainty in the stock markets, with which bitcoin is still highly correlated. The war in Ukraine continues to cause a lot of uncertainty in the financial markets.

Also, the dollar index (DXY) had a strong week and that is usually negative for bitcoin. In fact, DXY reached its highest price in almost 2 years yesterday, and analysts report that the chart is bullish appearance. That could bode even more bad news for BTC. With that being said, it is also a good sign that BTC is currently holding up as DXY rises. That shows that there is a lot of support here.

Positive bitcoin news and accumulation.

However, there is also positive news for bitcoin. Strike CEO Jack Mallers made a big announcement during the Bitcoin 2020 event. He announced that Strike is integrating with Shopify so stores can accept bitcoin payments through the Lightning Network. that’s what it’s called layer-2 scaling solution for faster and cheaper transactions. Read more about it in this Crypto Insiders article.

BTC accumulation also remains strong, which is a very bullish sign for the price. For example, On-chain College reports that the supply of BTC on exchanges is now below 13% of the total, the lowest level in over 4 years.

Analyst PlanC adds that the supply of bitcoin, which has not moved for at least a year, is a new its highest point of 63.46% has reached.

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