Bitcoin may be threatening lower levels, but data suggests that demand is “up only” behind the scenes. After a rally in line with Wednesday’s Wall Street start, Bitcoin (BTC) held on to further gains on April 14.
The level to hold presently is $40,500
BTC/USD was still trading above $41,000 on Thursday, according to data from TradingView, having reclaimed the $40,000 mark during the run higher.
“So far so good, I expected a move to 41k but I’m not sure about going for an extra leg down to the green box (blue),” Crypto Ed, a popular trader, said overnight with a chart with short-term price objectives.
“In the next hours, a little more up, then a correction.” We’ll retest 40.5k and go for 42-43k if it holds (white). We’ll opt for green box if you lose 40.5 pounds.”
At the time of writing, the price of $40,500 was showing no indications of decreasing, with volatility fading into Thursday and Bitcoin facing no serious threats to its upward trend. Others took advantage of the absence of bullish mood to argue that Bitcoin was far from bearish this year, despite the lack of bullish sentiment.
— Matthew Hyland (@MatthewHyland_) April 13, 2022
The lower the time preference, the less cause for concern – even after plunging over 50% from November’s all-time highs, Bitcoin exhibited more than a passing resemblance to traditional market behaviour, as fellow analyst TechDev highlighted.
This month’s focus was on a chart pattern that resembled that of the Dow Jones at the start of the 1990s. “The times have changed. Assets change over time. The majority of the time, macro aggregate human activity does not “The following is a summary of TechDev.
Bitcoin’s stock correlation is still a source of concern for some, with a drop expected to have a big influence on price.
Withdrawals from the exchange have increased
Meanwhile, there were other reasons for Blockware chief insights analyst William Clemente to preserve his trust.
He stated on Wednesday that cryptocurrency exchanges were shedding BTC reserves at an unprecedented rate, meaning that any increase in demand will compete with a rapidly shrinking supply, driving price performance even further. He added alongside statistics from on-chain monitoring firm Glassnode, “On only three other times have we ever witnessed Bitcoin taken from exchanges at this rate.”
The net position change indicator from Glassnode monitors both upward and negative changes in balances across 18 exchanges.
Exchange withdrawal spikes are a hotly contested topic, and pundits’ excitement has grown this year as demand has soared.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.