Bitcoin (BTC) fell at the open on Wall Street on April 29 as US markets opened to volatility, including an 11% drop in Amazon shares.
Everything changes at the Fed
Data from Cointelegraph Markets Pro and TradingView confirmed that the BTC/USD pair dipped to $38,622 on Friday from Bitstamp.
Despite a decline in the relentless US dollar bull run, Bitcoin showed few signs of strength as it held firmly below $40,000.
Macro factors held up against the largest cryptocurrency along with risk assets in general, commentators noted, as the Federal Reserve reduced its balance sheet.
the beginning of #fed deleveraging? Fed balance sheet has shrunk for the 2nd consecutive week. Total assets now at $8,939bn, equal to 36.6% of US’ GDP vs ECB’s 82% or BoJ’s 137%. pic.twitter.com/0GRR5VgGIe
— Holger Zschaepitz (@Schuldensuehner) April 29, 2022
The beginning of the deleveraging of the Fed? The Fed’s balance sheet has shrunk for the second week in a row. Total assets now stand at $8.939 billion, which is equal to 36.6% of US GDP vs. 82% for the ECB or 137% for the BoJ.
For Amazon, meanwhile, the pain was immediately apparent, as missing earnings targets resulted in AMZN’s biggest intraday loss in eight years.
The S&P 500 was down 1% at the time of writing, while the Nasdaq 100 was down 0.9%.
Focusing on Bitcoin, Popular trader and analyst Rekt Capital argued that the RSI may need to form a higher low and bounce to provide the market with the momentum for a short-term breakout.
#BTC ultimately rejects at this resistance
Now pulling back
could $BTC find a base and then rebound once the RSI Higher Low has been revisited?#crypto #bitcoin https://t.co/nneXL2BrKe pic.twitter.com/AKMzmmdGds
— Rekt Capital (@rektcapital) April 29, 2022
BTC finally rejects this resistance
now pulling back
Could $BTC find a base and then recover once the higher low of the RSI has been revised?
Whales buy again at the bottom of the bear market
Meanwhile, in its latest chart update on whale behavior, data from on-chain analytics platform Whalemap showed that buying behavior echoes the bottom of the late-2018 bear market.
According to your data,Whales with balances between 1,000 and 10,000 BTC are busy accumulating BTC to the extent that they were when the BTC/USD pair hit $3,100 in December of that year. The volumes even exceed those of the $3,600 crash in March 2020.
“Whales are hoarding as much Bitcoin today as they were at the $3,000 lows,” commented analyst and indicator creator Charles Edwards.
“These are supports with approx. $40M – $400M in your wallets today. In 2018, that was $4 million – $40 million (but there were no ‘institutions’ at the time, either).”
This week, Whalemap also noted that current spot price levels represent historically significant ground for both buyers and sellers.
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