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
— Matthew Hyland (@MatthewHyland_) April 8, 2022
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.
$BTC showing some signs of life after TradFi closed slightly green. There is a bullish split in OBV with MACD and RSI appearing. Predator is teal and vwap claimed. It is best to keep $42,700 down. To the upside you need to clear $44,400 followed by $45,500 https://t.co/O9M2RVLofW
— Decenterer (@decenterer) April 7, 2022
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.
There it is, now we will check the box of the second objective in $DXY drawn months ago.
– Daily, weekly and monthly RSI all look bullish
– Daily, weekly and monthly MACD look bullish
– Above 200 W MA since November
– May 2020 the last time it was this high
—Jesse Olson (@JesseOlson) April 7, 2022
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.
— OnChain College (@OnChainCollege) April 7, 2022
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.
Update #bitcoin supply that hasn’t moved in at least 1 year, just set a NEW all-time high at 63.46%!
— Plan©️ (@TheRealPlanC) April 8, 2022
Crypto Insiders Premium Bitcoin Analysis
Are you interested in delving deeper into bitcoin and the price? Then take a look at our premium environment! This is where the community and our analysts share and discuss daily technical analysis. You can also contact our crypto coaches here who will be happy to answer your questions. Now you can try it free and without obligation for the first 30 days!