Technology

Bitcoin retests the key level that caused a 66% increase in the price of BTC in 2021

Bitcoin (BTC) fell at the open on Wall Street on April 5 after briefly breaking above the $47,000 level.

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

A trader shows the importance of the 200 DMA for Bitcoin

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair experienced downward pressure when financial markets opened on April 5.

Therefore, the pair was more or less at the same level as 24 hours ago, with the interim period seeing volatility both higher and lower.

Amid a general lack of direction, traders and analysts waited to see where the largest cryptocurrency would go next.

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

“Speaking of compressing and coiling. It might break, but you never know,” said as part of your comments for the day.

Crypto Rover noted the importance of the 200-day moving average that Bitcoin was trying to break. Historically, success in doing so has led to significant price gains, he noted.

Bitcoin retesting the 200d MA as support for the first time in 190 days. #BTC is up 66% in the next 43 days the last time this happened!

Meanwhile, news that MicroStrategy had bought over 4,000 BTC failed to to offer enduring market strength, despite praise from commentators.

The company’s Bitcoin treasury thus stood at 129,218 BTC, which is still by far the largest in the world. However, as Cointelegraph reported, Blockchain Terra’s plans meant that its own stash should ultimately outstrip that of MicroStrategy and any other Bitcoin whales.

Analyst notes impressive Q1 close

Meanwhile, for trader and analyst Rekt Capital, there was much to celebrate for Bitcoin on higher timeframes.

In a series of tweets on April 5, dclarified that Bitcoin’s Q1 candlestick was a successful achievement even though its price at the start of Q2 was pretty much the same.

BTC – Quarterly

Bitcoin has closed below midrange resistance for three quarters in a row

But this past quarter, $BTC managed to form a higher low compared to the orange multi-quarter high low.

Very strong buy-side reaction from the blue line

“The interesting thing about BTC right now is that it is in the process of retesting the quarterly midrange area as support on the weekly time frame,” He said another post.

Rekt Capital he pointed further 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 Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

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