John Isige
Bitcoin price analysis: BTC is attempting a recovery above $67,000 as the week that started with immense selling pressure to $65,000 comes to an end. The sell-off in Bitcoin spread across the market impacting major altcoins like Ethereum (ETH) and Solana (SOL) the most.
Blockchain data providing insight into Bitcoin’s fundamentals has recently shown that long-term investors sold around all-time highs to meet the burgeoning demand for BTC to newer investors, who currently hold approximately 44% of the aggregate network’s wealth.
Meanwhile, according to a recent report by Kaiko, the largest cryptocurrency’s 60-day correlation with altcoins dipped to the lowest level in years during the first quarter of 2024 compared to a similar period in 2023 and 2022.
This means that altcoins are no longer mirroring Bitcoin’s price action as they did in previous years. Information like this is crucial to investors, especially with the halving in April. Due to this, some investors may decide to have their portfolios lean more on Bitcoin or the altcoins
#Bitcoin‘s 60-day correlation with altcoins has fallen to multi-year lows in Q1 2024, relative to the same period in 2023 and 2022. pic.twitter.com/8LiWeZuF73
— Kaiko (@KaikoData) April 5, 2024
Bitcoin Price Analysis: BTC Struggles To Recover As Whales Sell
Bitcoin price briefly recovered above $70,000 in March after a correction to $60,000. Reports in the market based on blockchain data indicate that whales have been selling to profit from the high prices while meeting a spike in demand possibly due to the halving in April.
Crypto analytics firm Glassnode notes that long-term holders’ realized profit/loss ratio has been on an upward roll — almost vertical. The reason behind this based on blockchain data is “a significant uptick in LTH profit taking.”
Responding to Glassnode’s post on X, Crynet argued that “Indeed, the LTH Realized P/L Ratio’s exponential rise underscores the market’s resilience. It highlights a strategic shift as LTHs capitalize on recent gains. A robust indicator of evolving investor sentiment and market dynamics.”
Insight from santiment revealed that price suppression experienced this week may have been caused by the United State’s “government authorities’ admission to selling nearly 10,000 $BTC from the #silkroad seizure.”
Investors must be aware of at least four additional sales of the same size in the year. Due to this revelation, traders have been fearful, with data highlighting a “spike in crowed interest related to the Silk Road in 2024.”
Despite the fear, markets tend to move in the opposite direction, defying expectations. Therefore, as fear swells, Bitcoin price could regain momentum for another debut above $70,000 this weekend.
📈 #Bitcoin has bounced all the way back above $69K after dropping below $65K just two days ago. The culprit of the fall, according to most of the #crypto community, is attributed to the U.S. government authorities’ admission to selling nearly 10,000 $BTC from the #silkroad… pic.twitter.com/PiCrZo2YaI
— Santiment (@santimentfeed) April 4, 2024
After retesting the previous day’s open at $68,485, Bitcoin price is hovering at $67,972. CoinGecko data shows that the price is unchanged over 24 hours, but down 2.1% in the last week.
The 50-day Exponential Moving Average (EMA) (the line in red on the chart at $67,802) holds as the immediate support. Several candle closes above this level could prop BTC for a major uptick in price aiming for areas above $70,000.
If sell-side pressure increases based on the outlook of the Relative Strength Index (RSI) below the trendline resistance, the 20-day EMA (in blue at $67,336) and the 200-day EMA (in purple at $65,773) will come in handy to stop the losses.
Also in place to provide support to BTC is the ascending trendline. Should prices bounce off breaking above the triangle’s horizontal resistance, Bitcoin price may swing to new a all-time high at $80,726.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
