Traders’ struggle to build sustainable bullish momentum persisted in the crypto market on April 20 after prices fell during the afternoon trading session and ApeCoin (APE) seems to be one of the few tokens that defies the current downturn in the entire market.
Data of Cointelegraph Markets Pro Y TradingView show that a morning attempt by Bitcoin (BTC) bulls to break above $42,000 was roundly rejected by bears, resulting in a pullback to a daily low of $40,825 before the price traded back above $41,000.
Here is a look at what various market analysts are saying about Bitcoin’s weakness and what levels traders see as a good place to open new positions.
Whales accumulate close to USD 40,000
According to on-chain data firm A Whalemap, there is a significant amount of volume near the $40,000 price level.
whalemap said:
“A largely significant portion of whale holdings is between $38,000 and $42,000 right now. Vital area for Bitcoin. Above it – bullish. Below him – bassist”.
Analysts say most of the market has already capitulated
Similar to the observation made by Whalemap, Glassnode analysts noted that “a large amount of coin supply has re-accumulated between $38,000 and $45,000, which is the main price range of the current market consolidation.”
When the data is broken down between long-term holders (LTH) and short-term holders (STH), which is determined by a holding threshold of 155 days, only some of the STHs that bought between $50,000 and $60,000 are still in possession. , “Which suggests most of the ‘major buyers’ have probably already capitulated.”
According to Glassnode, a large percentage of current STH demand “is clustered between $38,000 and $50,000, confirming that investors continue to see value in this price range.”
The fact that the 15.2% of Bitcoin held by LTHs is currently at a loss suggests that many LTHs “were caught out of the game” by the most recent market correction according to Glassnode, an outcome usually seen “in the later stages” of bear markets, most of which preceded a final capitulation event.
Glassnode hypothesized that some of the current weakness in the market could be due to fears of further capitulation, which is prompting traders to wait on the sidelines until such an event occurs.
The Glassnode team said:
“However, under the surface, it seems that a large part of the market has already capitulated, in a statistically significant way, and a flow of resilient demand between $35,000 and $42,000 has quietly absorbed this sell side in its entirety.”
Bitcoin needs to hold the $41,300 level
The pseudonymous Twitter user ‘Abnessa’ said that Bitcoin price needs to break above $41,300 to complete a potential inverse head and shoulders pattern on the 4-hour chart.
According to Abnessa, Bitcoin is currently “trying to recapture this level after the failed support/resistance (S/R) conversion.”
To set the case Bullish, Bitcoin needs to “successfully convert S/R of current downtrend line” and “regain support to the green neckline”, thus completing the reverse head and shoulders setup.
As for the case bearish, a failed retest of $41,300 would result in a “break below the bear flag” and “would also mean that S/R turns rising wedge resistance into support.” If this happened, Abnessa sees a “minimum drop target of $35,000.”
The total cryptocurrency market capitalization currently stands at $1.909 trillion and the dominance ratio of Bitcoin is 41.1%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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