In the digital asset markets, it’s a week of consolidation. Bitcoin (BTC), the most valuable asset on the CoinMarketCap table, is down roughly 7%. Despite some positive announcements, the price of Bitcoin fell to $39,204, however, the markets are currently stabilizing and forgetting about some of the major concerns and uncertainties in the near term. BTC pushed above the $40,000 level for the fourth time this week, continuing a tough unbeaten run as bearish impetus fades. An ascending trendline has been forming since late January and it’s seen as a bullish indication supporting the BTC/USD rebound around the $40k zone which rejects further decline. Following the rebound, Bitcoin is currently trading at $40,381 at the time of analysis. Per Glassnode data, the Bitcoin accumulation phase continues. In addition to “whales” the so-called “shrimp” (addresses with a balance of less than 1 BTC) also contributed to the accumulation. Since the January 22 low, they have accumulated 0.58% of the market supply, bringing their share to 14.26%. The rate of coins leaving centralized exchanges has risen to 96,200 BTC per month, which is exceedingly unusual in historical terms.
Key Levels
Resistance Levels: $48,500, $45,000, $42,000
Support Levels: $40,000, $37,000, $35,000
BTC/USD Daily ChartAfter regaining a foothold on the $40,000 support on April 15, BTC/USD might head to retest the moving average (MA 50) at $42,000. The bulls were able to hit intraday highs of $40,805, with near-term indicators indicating that upward momentum was building. The increasing index relative strength is now back above the 40s.
Initial resistance could come from the $42,000 and $43,000 levels if buyers push past the MA 50. Above $42,000, the $43,000 level may act as a roadblock to future gains towards the $45,000 all-time high. The ascending trendline on the flipside might establish quick support for sellers. If the BTC/USD pair continues to fall from here, it might put pressure on the $39,000 support level ahead of the $37,000.
BTC/USD 4-Hour ChartFollowing the recovery from the $39,204 weekly lows, BTC has risen slightly. The technical indicators are confirming the recent upward trend, with the 4-hour relative strength index (RSI) about to cross midline 50. BTC/USD, on the other hand, is still trading beneath the bearish crossover of the 4-hour MA 50 and 200. Traders should keep an eye on MA 50, if prices can be overcome, they might continue its rise.
If the bears are successful in bringing the price back below the $40,000 barrier, which has now become support, the price might stall at the ascending trendline before trying the $39,000 to $38,000 area. If the market continues to fall, it could reach the $37,000 support level. Finally, a break above the short-term moving averages could suggest the price’s future move.
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