Over the weekend, Bitcoin faces a downtrend below $40,000. This caused extreme fear in the Crypto market. It was predicted by crypto analysts that the price of Bitcoin will go beyond the $38,000 zone as they detected a bearish movement, traders traded with a short strategy and there was a high level of panic selling in the market.
In the early hours of today, Bitcoin is taking another turn and it is now back above the $40k zone. As of now, Bitcoin is trading below $40k according to data found in the coin market cap.
The downtrend below $40,000 over the weekend may have made Whales buy the dips. In fact Data from on-chain platform sentiment, Ai Martinez stated that Whales bought 40,000 BTC worth $1.6billion, and addresses holding 10,000 to 100,000 BTC increased their holding power by 2%.
As Whales kept buying the dip, short-term holders sold out of panic. The news and prediction must have given them extreme fear and they have sold at loss. This market activity by Bitcoin Whales must have been the reason for the upward change in the price of BTC.
What To Expect From BTC In The Coming Days
The positive climb of Bitcoin price from $38,000 to $40,000 in the past few days could signify a bullish movement in the price of Bitcoin in the coming days. Bearing in mind that the movement of Bitcoin cannot be accurately predicted as it is highly volatile and any negative news might cause another dump.
However, some major positive news coming might bring about a bullish movement in the price of Bitcoin. Some of this news includes Australian action to obtain its first spot BTC ETF and its listing on the CBOE equity exchange on April 27 which is a few days from now.
Reports from Glassnode analysis also show that a large number of Bitcoin have been extracted from various exchanges to hardware wallets. This can also cause a hike in the price of Bitcoin.
A major pump in the price of Bitcoin has not occurred as it has been ranging from $38k to $45k since late 2021. A major pump above $60k will be a more satisfactory uptrend in the Bitcoin market.
As of now, traders are skeptical about whether to long or short the market, this is because metrics that will determine an uptrend in the price are not stable. The monthly chart is unpredictable and so the uptrend and downtrend movement of BTC may not end until May or June. This is not the only determinant because any favorable turnout of the inflation crises or from the Russia and Ukraine way could also bring a pump.
In any case, Whales are ready to buy more during any slight dip and could also sell in a pump. Investors, traders, and researchers will continue to keep an eye on the market movement to spot any volatility.
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