Bitcoin set for volatile monthly close after BTC price ‘checks all boxes’ for major move

Published at: April 28, 2022

Bitcoin (BTC) has reentered its most significant lifelong consolidation zone but could still crash to a “macro bottom,” new research warns.

In a Twitter thread on April 27, on-chain analytics platform Material Indicators shone a light on the importance of $38,000 for BTC price action.

Bitcoin circles all-important point of control

After lingering near liquidity at or above $37,700 on intraday timeframes, data from Cointelegraph Markets Pro and TradingView shows that BTC/USD has yet to make a clear move up or down, and traders have been left guessing which way the market will go.

Macro factors are demanding further downside as the impact of inflation and geopolitical strife is clearly felt in equities markets.

At the same time, on-chain signals are anything but bearish, led by miners and their ever-increasing investment in hash rate.

Whether short or long timeframe, however, $38,000 forms a critical historical price for Bitcoin.

“Since the breakout from $20k in Dec ‘20, BTC has consolidated in this range more than any other,” Material Indicators explained.

It added that the “point of control” — essentially the price level with the highest volume — now sits at “precisely” where the spot price is currently acting.

Where Bitcoin could go from here, however, is not obvious, given this month’s price trend. Analyzing the three-day chart, Material Indicators noted both bullish and bearish patterns repeating themselves this week alone.

These involve the 50-period, 100-period and 200-period moving averages on the three-day chart.

“Zooming in slightly to the 3 Day chart reveals that 3-Day 50MA crosses below the 100 3-Day MA have triggered rallies and interaction with the 3-Day 200 MA has either led to a rally or breakdown to the macro bottom,” they noted.

“BTC has checked all of those boxes this week.”

Lost moving averages stack up

Regardless of direction, volatility is all but guaranteed thanks to the upcoming monthly close. At present, BTC/USD is set to close April $6,000 lower than where it started.

Related: Ex-BitMEX CEO explains how Bitcoin will have hit $1 million by 2030

As Cointelegraph previously reported, the weekly chart produced the first four-period red candle set since June 2020 on last Sunday’s close.

Two key weekly moving averages, meanwhile, repeated a rare trend, which twice sparked a 50% BTC price drawdown this week.

Concluding, Material Indicators brought whales into the picture. In addition to now lying below all three aforementioned moving averages, whale buying and selling behavior at this crucial point is key to determining future trajectory.

“Until BTC reclaims the key moving averages these are considered distribution rallies used to sell the rip or add to short positions,” they wrote.

“Expect more volatility coming into the Monthly close/open. Will look for a new Trend Precognition signal on the Monthly chart then.”

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

Tags
Related Posts
Another $1 billion wipeout: Why is Bitcoin seeing extreme price moves?
Nearly $1 billion worth of Bitcoin (BTC) futures contracts were liquidated on Jan. 13, a day after the big shakeout. The continuous loop of liquidations is causing extreme volatility and large price swings in the cryptocurrency market. What are futures liquidations, and why are so many Bitcoin positions being liquidated? In the Bitcoin futures market, traders borrow additional capital to bet against or for Bitcoin. The technical term for this is leverage, and when traders use high leverage, the liquidation threshold gets tighter. For example, if a trader borrows 10 times the initial capital, a 10% price move to the …
Bitcoin / Jan. 13, 2021
Bitcoin sees record 100 days above $10K as one analyst eyes ‘parabolic’ 2021
Bitcoin (BTC) has officially beaten a new record as BTC/USD trades above $10,000 for 100 days, and major gains should come next. As voting in the United States’ presidential election ended on Nov. 3, Bitcoin saw a landmark moment of its own — 100 days straight trading in five figures. Bitcoin sees record stretch above $10,000 The achievement is not just impressive as a record for $10,000-plus prices. According to previous data, once Bitcoin trades above these significant price levels for 100 days, BTC/USD swiftly increases by an order of magnitude. As Cointelegraph reported last week, the length of time …
Adoption / Nov. 4, 2020
Crypto Markets in The Green, XRP Sees Major Boost Briefly Overtaking ETH by Market Cap
Tuesday, Nov. 6: top cryptocurrencies have seen strong gains on the day, with Ripple (XRP) temporarily overtaking Ethereum (ETH) as the top altcoin by market capitalization. Market visualization from Coin360 Bitcoin (BTC) is up 0.3 percent over the last 24 hours, and is trading at around $6,447 as of press time. Having briefly dipped below $6,400 during the day, BTC has rebounded and is pushing a slightly higher price point. BTC is still down 1.67 percent over the past 30 days. Bitcoin 7-day price chart. Source: CoinMarketCap ETH has seen some growth over the 24-hour period, up 3.64 percent from …
Bitcoin / Nov. 6, 2018
Bitcoin Price Stays Static at $8,800 as NEO, BNB Steal the Limelight
Bitcoin price (BTC) continued its daily trading pattern on Nov. 13, hovering just under $8,800 after losing support at $9,000. Cryptocurrency market daily overview. Source: Coin360 Bitcoin tracks sideways below $9K Data from Coin360 showed another lackluster day for BTC/USD, with little progress over the past 12 or 24 hours. The week had begun with Bitcoin losing its foothold higher up, exiting a trading corridor between $9,000 and $9,500 and so far failing to reclaim it. Bitcoin seven-day price chart. Source: Coin360 As Cointelegraph reported, analysts had remained broadly bullish on longer-term market prospects. Now, however, the short term could …
Bitcoin / Nov. 13, 2019
Bitcoin price reverses gains on New Year's Eve; hodlers continue stacking sats
Bitcoin (BTC) and the broader cryptocurrency market turned lower Friday afternoon, erasing intraday gains to cap off a highly successful year on a weaker note. Market Update The BTC price fell below $46,000 Friday and was last seen hovering below that level, according to data from Cointelegraph Markets Pro and TradingView. The flagship cryptocurrency is down 2.9% on the day to trade at $45,933. BTC's price is down more than 5% from the intraday peak. Altcoins faced a similar downward trajectory as Bitcoin, with the likes of Ether (ETH), Binance Coin (BNB) and Solana (SOL) each falling more than 2%. …
Bitcoin / Dec. 31, 2021