Bitcoin retests key level that sparked 66% BTC price gains in 2021

Market Analysis

Bitcoin (BTC) fell into the Wall Street open on April 5 after briefly passing $47,000.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader shows importance of 200DMA for Bitcoin

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD encountering downward pressure as financial markets opened Tuesday.

The pair was thus more or less at the same level as 24 hours previously, with the intervening period seeing volatility both up and down.

Amid an overall lack of direction, traders and analysts were waited to see where the largest cryptocurrency would go next.

Popular Twitter account CivEkonom was optimistic, highlighting a CME futures gap at $54,000 as a potential target.

“Talk about compressed and coiling up. Should break up, but you never know,” he said as part of comments on the day.

Fellow account Crypto Rover noted the significance of the 200-day moving average that Bitcoin was attempting to break through. Historically, success in doing so had led to significant price gains, he highlighted.

News that MicroStrategy had purchased over 4,000 BTC meanwhile was unable to deliver lasting market strength, despite praise from commentators.

The firm’s Bitcoin treasury thus stood at 129,218 BTC, still by far the largest in the world. As Cointelegraph reported, however, plans by Blockchain protocol Terra meant that its own stash should ultimately surpass that of MicroStrategy and every other Bitcoin whale.

Analyst eyes impressive Q1 close

For trader and analyst Rekt Capital, meanwhile, there was much to celebrate in Bitcoin on higher timeframes.

Related: Bitcoin retail FOMO spiked most since 2017, but BTC price may still be ‘doomed’ — analyst

In a series of tweets Tuesday, he declared Bitcoin’s Q1 candle a successful achievement despite its price at the start of Q2 being practically the same.

“What’s interesting about BTC right now is that it is in the process of retesting the Quarterly Mid-Range area as support on the Weekly timeframe,” another post read.

Rekt Capital further signalled incoming volatility on the weekly chart thanks to a tightening of the Bollinger Bands volatility indicator.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

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