Bitcoin’s (BTC) downtrend appears to have stalled as the leading cryptocurrency aims to build a solid foundation above the $27,000 position. This comes just days after failing to sustain gains above the $30,000 mark.
Despite the downturn, pseudonymous crypto analyst El_crypto_prof hinted in a tweet on April 23 that the losses could be short-lived. According to the analyst, historical data points to a potential bull run for Bitcoin after what he described as the end of smart money accumulation, signaled by the Quantitative Qualitative Estimation (QQE) crossing zero.
“Smart money is made by accumulating BTC. I told you a few weeks ago that as soon as QQE > 0 = accumulation ends. We always saw a strong bull run after that.<…> And bears appreciate some red candles,” he said.
Bitcoin price analysis chart. Source: TradingView
What’s Next for Bitcoin?
Elsewhere, crypto trading expert and analyst Michaël van de Poppe also pointed out in a tweet on April 23 that Bitcoin still faces crucial resistance at $27,800.
In that line, he predicted that a lower test of Bitcoin could lead to bullish divergences.
“Bitcoin still faces key resistance and was rejected at $27,800. Another test down would generate bullish divergences and open up opportunities for long plays towards $28,700. Casual Sunday/Monday dump and then vice versa. Funding rates are finally being reset as well,” he said.
Bitcoin price analysis chart. Source: TradingView
As previously reported by Finbold, Bloomberg’s senior commodities strategist Mike McGlone predicted that Bitcoin would likely see a short-term pullback after falling below $30,000. However, he remains optimistic about the long-term prospects.
Bitcoin’s latest correction came shortly after the asset surpassed $30,000 for the first time in about 10 months. This surge has been attributed to Bitcoin taking advantage of the crisis in the banking sector in the United States and optimism surrounding the Federal Reserve’s stance on inflation.
The correction has seen Bitcoin lead the broader market on short-term losses, partly in response to high UK inflation data. This development has raised concerns about longer-lasting interest rates, which has contributed to the sell-off of Bitcoin and other risky assets.
Bitcoin price analysis
At press time, Bitcoin was trading at $27,666, up about 1.4% over the past 24 hours. However, over the past seven days, Bitcoin has suffered losses of around 9%.
Bitcoin seven-day price chart. Source: Finbold
Meanwhile, TradingView’s Bitcoin technical analysis suggests a neutral stance. One-day reads sum as “neutral” at 8, with moving averages at 1. Oscillators, on the other hand, suggest a “sell” sentiment at 3.
Technical Bitcoin Analysis. Source: TradingView
As of today, Bitcoin investors will be eyeing renewed bull activity to help the first crypto avoid another correction.
Disclaimer: The content of this website should not be construed as investment advice. Investing is speculative. When investing, your capital is at risk.
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