Bitcoin Bounce!
On Jan. 22, 2022, Bitcoin's downtrend from the high of 69k and some change on Nov. 10th, reversed its momentum to an upwards channel. The entire time( between Nov. to Jan) Bitcoin sold off alongside traditional markets. There was a tightening of volume while long-term holders continued to hold their positions. This shows a lack of interest in selling at lower prices. On-chain data shows new buyers since Nov. 10th, 2021 are holding or selling their positions at losses. About four times the price has pulled back and bounced off of the new upwards channel that has been forming since January. The most recent pullback on April 11th has led to a sideways crab market. Here we can see large volume picking up on April 11th, 18th and the 25th. These were days of high volatility and emotions as the market made sharp turns between the range of 38k and 43k. The price of traditional markets like the NASDAQ and the DJI opened negative. It was looking to be a bloodbath again. However, prices recovered and erased any and all losses for the day. In my opinion, investors seem to be pricing in the the Federal Reserves hawkish stance on interest rates. Bitcoin, which has had a very close correlation to the NASDAQ as of late, seems to have followed suit. Currently the price is back above this support line of the upwards channel. The price, on low volume, had slipped below support over the weekend. With positive sentiment returning to the space, the bulls seem to remain cautiously optimistic. The price could still fall from here though. At that point I will be looking at the $36-39k level as my next support zone. Understand the market participants to understand where the smart money is looking.
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