As Bitcoin (BTC) attempts to reclaim the psychological $30,000 level, some conclusions can be drawn about its current activity as well as future prospects, as detailed in cryptocurrency trading expert Michaël van de Poppe’s in-depth analysis.
Specifically, van de Poppe detailed Bitcoin’s historical price action, including bear markets in 2019, 2020, and 2021, as well as “a tough one in 2022” in which the long-term holders have accumulated their Bitcoin positions, as he explained in his March 27, 2020 report April streamed YouTube video said.
“We’re seeing that in the recent correction in markets, long-term holders have massively jumped into bitcoin, fueling the case that you’re also looking to build your position. It doesn’t tell you that the bottom is in, but it does tell you that we’re getting into a period where long-term holders are interested, and the long-term holders are usually the bulls.”
Accumulation versus sale
As he noted, “In 2021 and 2022 we have seen accumulation even in the periods around $15k to $18k when the FTX collapse took place. (…) In this recent correction we can see exactly the same thing, namely a huge spike in accumulation, showing once again that they firmly believe in an up cycle or bullish move in the Bitcoin markets.”
Long-term analysis of bitcoin holders. Source: Michael van de Poppe
According to van de Poppe, it is bitcoin miners who are pushing the price down as on-chain data shows they are selling their bitcoin “to keep their business going. So as soon as they start selling they get additional selling pressure in the markets and that could push the markets down for a bit more” as they set off a “chain reaction and liquidations”.
“We see a sharp sell-off from the amount of stocks for the miner’s reserve, (…) and the price of bitcoin consolidated around $30,000, and then [it] has fallen towards $27.5 and as a result (…) miners have sold their bitcoin – in fact they have sold around 6,000 BTC in the past week, which further caused bitcoin to fall from over $30,000 to $27,000.”
Technical Bitcoin Analysis
In terms of technical analysis (TA) indicators, “Bitcoin has seen a correction around $31,000 as prices have reacted massively in this area” as it happened back in early 2021 and summer 2022 when the rejection area turned into resistance .
On the other hand, van de Poppe believes that the next potential resistance points to look at are between $41,000 and $47,000 – and “this is the crucial next area Bitcoin could find itself in if it breaks $30,000.”
“As long as bitcoin stays above $25.4k there is a probable case of trend continuation and then we can see expectations for bitcoin to be between $41k and $47k unless bitcoin will drop below $25k, which as a result will prices back down towards $20,000 or $19,000.”
Bitcoin price analysis. Source: Michael van de Poppe
Meanwhile, Bitcoin is currently trading at the price of $29,039, down 2.35% on the day, but posted a gain of 0.71% over the previous week and a rise of 6.83% over the past 30 days, as per the latest chart data retrieved by Finbold on April 27.
Bitcoin 7-day price chart. Source: Finbold
Whether Bitcoin manages to break through $30,000 again and hit the next crucial resistance area that the crypto expert predicts will depend on developments directly affecting the flagship decentralized finance (DeFi) asset, as well as the broader crypto market and the macroeconomic atmosphere.
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