Following a series of recent price falls that took it lower than the $29,890 mark, Bitcoin (BTC) appears to have established a solid foothold above that level. The rate of bulls’ strength will be able to be gauged based on how quickly the price of Bitcoin recovers, followed by a retest of the level.
Gains to Be Obtained Momentarily From Bitcoin
Between November of the previous year and April of the following year, 2022, the price of bitcoin printed a bearish continuation configuration known as a bear flag. In the meantime, after a brief period of consolidation toward the end of April, Bitcoin (BTC) triggered a breakout from this pattern, which resulted in a significant decline in price.
The structure consists of a significant decline, also known as a flagpole, followed by a consolidation phase, also known as the flag. The price tends to continue its downward trend after a breakout from one of these patterns. Therefore, a formation of continuance.
When the height of the flagpole is added to the breakout zone, the technical setup forecasts a 46% decrease in price. On April 22nd, the leading cryptocurrency broke over the flag’s bottom trend-line close to $40,032; this revealed $21,584 as the goal price.
A vicious sell-off in the cryptocurrency market was brought on by the heightened volatility that followed the FOMC meeting as well as the LUNA-UST situation. Because of this, the price of Bitcoin fell to $25,333, which caused chaos in the market for other cryptocurrencies. In spite of this, Bitcoin’s rebound seems to be getting off to a good start as the currency continues to hover above the support floor of $29,100.
Bitcoin’s price might make a move higher if bulls are successful in ensuring a retest of the level. Under such circumstances, the price of the most valuable cryptocurrency in the world may approach $35,100. The upswing would result in a total gain of 17 percent, and the peak might put a ceiling on BTC’s advance.
In addition, the most recent tweet from the Luna Foundation Guard eliminated doubt among individual investors. Following the publication of the post, it was discovered that LFG had sold around 80,081 Bitcoin from their reserve of 80,394 $BTC. As a result of the news, purchasers may once again begin bidding on the property. In the meanwhile, the tweet stated that LFG would use whatever assets were left over to reimburse ongoing UST users. In the meanwhile, updates will be provided shortly while the foundation discusses various methods of distribution.
This story regarding the price of bitcoin is supported by the exchange supply chart. Since this statistic represents the entire amount of assets listed on the exchange, it could indicate potential sell-side pressure. During sell-offs, investors would panic and sell their holdings, which would lead to enormous sell orders and might exacerbate the slide.
In the case of Bitcoin, assets held on centralized platforms experienced a loss of 50,000 BTC, which reflects a reduction in the probable amount of sell pressure. According to the technical point of view, this is consistent with the bullish narrative. As a result, participants in the market should brace themselves for an uptick in Bitcoin’s price soon.
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