Material Indicators claims that a strong cocktail of whales, moving averages, and macro events will determine where Bitcoin price movement will go next. Bitcoin (BTC) has reentered its most significant lifelong consolidation zone, but new study warns that it could yet drop to a “macro bottom.”
On April 27, on-chain analytics platform Material Indicators highlighted the significance of $38,000 for BTC price action in a Twitter conversation.
Bitcoin encircles the crucial control point
BTC/USD has yet to make a decisive move up or down after hanging near liquidity at or above $37,700 on intraday timeframes, according to data from TradingView. Traders have been left guessing which direction the market will go.
As the impact of inflation and geopolitical instability is plainly felt on stock markets, macro forces require greater fall. On the other hand, on-chain indications, headed by miners and their ever-increasing investment in hash rate, are anything but gloomy. Regardless of the date, $38,000 is a significant historical price for Bitcoin.
“BTC has consolidated in this range more than any other since the breakout from $20k in December ’20,” Material Indicators noted.
The “point of control” — essentially the price level with the most volume — is now “precisely” where spot pricing is now acting, according to the report.
Given this month’s price trajectory, it’s unclear where Bitcoin might go from here. Material Indicators noticed both bullish and bearish patterns repeating themselves this week after analysing the 3-day chart. On the 3-day chart, these are the 50-period, 100-period, and 200-period moving averages.
“Slightly zooming in on the 3-Day chart reveals that 3-Day 50MA crosses below the 100 3-Day MA have caused rallies, and interaction with the 3-Day 200 MA has either led to a rally or a breakdown to the macro bottom,” it said.
“This week, BTC has checked all of those boxes.”
Moving averages that have been lost accumulate
Volatility is almost certain, regardless of direction, due to the nearing monthly close. BTC/USD is currently projected to conclude April $6,000 lower than where it began. On last Sunday’s close, the weekly chart produced the first four-period red candle since June 2020, as previously reported.
Meanwhile, two important weekly moving averages replicated an unique trend that triggered a 50% BTC price drop twice this week. Finally, Material Indicators introduced whales into the equation. In addition to now being below all three moving averages, whale buying and selling behaviour at this critical juncture is critical in determining future trajectory.
“These are termed distribution rallies utilised to sell the rip or add to short positions until BTC reclaims the major moving averages,” it stated.
“Expect increased volatility as the Monthly close/open approaches.” Then I’ll keep an eye out on the Monthly chart for a new Trend Precognition signal.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.