Three key indicators point to an approaching big move in the price of Bitcoin

 


Three key indicators point to an approaching

 big move in the price of Bitcoin


Bitcoin opened the second quarter of the year in a volatile manner, as its price fell

in early April to its lowest level in five months, recording less than $75,000.


This decline :

came amid escalating trade tensions :

  • especially after US President “Trump” announced new customs duties
  • before later suspending them on all countries except China
  • which temporarily calmed the markets and contributed to

the recovery of :

the price of Bitcoin by about $20,000 over the following two weeks.


Despite this recovery, the currency has been moving within a narrow range of

$93,000-$95,000, having surpassed the $90,000 mark more than a week ago.


With the lower limit remaining strong

the price returned to test the upper limit again.


Several technical and behavioral indicators indicate that this stage of consolidation

may be approaching its end, paving the way for a major price movement to come

and among these indicators we find:


1. Bollinger band pressure

technical analyst “Ali Martinez” highlighted the decline in volatility levels in

the price of Bitcoin, which is evidenced by the contraction of

the “Bollinger” bands on the four-hour chart.


This technical indicator shows low momentum

and is usually a precursor to a strong price movement.


According to “martinez” :

  • maintaining the support level at $93,198 
  • which has been held twice over the past week
  • is a prerequisite for the continuation of the potential uptrend.


He added that :

breaking the resistance level at $95,870 may open the way for

Bitcoin to rise towards its highest historical peak, which is approximately $114,230.


2. Whale activity :

Another indicator that supports expectations of a big move is

the observed activity of so-called ”whales”, i.e.large Bitcoin holders.


Over the past two weeks, these whales have acquired Bitcoin worth more

than $4 billion, a clear sign of long-term confidence in the market.


3. Positive institutional flows

In parallel :

Bitcoin exchange-traded funds (ETF) experienced a wave of extended

positive flows between April 17 and 30, which broke the previous negative trend.


Although slight external flows were recorded yesterday, amounting to $56.3

million, the volume of liquidity entering during the previous period far

exceeds them, which reflects a general trend towards institutional consolidation.


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