This week’s bitcoin drop is not “convincing,” analyst Filbfilb says, echoing others’ misgivings about the possibility of a short-term bullish continuation.
Bitcoin (BTC) could recover its losses on April 9 as fresh doubts emerged about the bull run continuing this month.
$56,760 “not a convincing bottom”
After multiple failed attempts to crack resistance close to ATHs, analysts were becoming wary of a further dip and a temporary halt to further price gains.
Fulfill, co-founder of trading suite Decentrader, said this week’s current floor of $56,760 is “not a convincing bottom.”
As reported before, funding rates among trading platforms call for a shakeout of leveraged long positions from those overly bullish on a continuation. For Filbfilb, those rates remain “way too high,” he told subscribers of his Telegram trading channel.
Well-known Twitter trader Cantering Clark meanwhile pointed to Bitcoin’s 20-week moving average (MA) — a classic “line in the sand” for price performance — still lingering at around $40,000.
“More fuel for why I think April-May puts a lid on $BTC until later in the year,” he said on a comparative chart.
“Simple as it is, this 20 week MA with a 2 standard deviation band above. At some point, these meet. Either it comes to us or we come to it. Hard to imagine this takes plus much higher up.”
Macro turns favorable for Bitcoin bulls
Despite the growing institutional interest, fueled by major new adoption announcements from banks, signs of a slowdown were also started to show on the day.
The Purpose Bitcoin ETF saw a slight reduction in its BTC holdings after consistent growth, with its assets under management dropping from highs of $976 million to $944 million.
Fellow institutional portal Grayscale’s Bitcoin Trust maintained its negative premium, meanwhile, a phenomenon which has put pay to further Bitcoin accumulation since February.
But not everyone was wholly gloomy. For trader Crypto Ed, the ultimate market trajectory was clear.
“Not in a rush to get in a position,” he said on Thursday.
“54k first or up from here, both mean we’re starting a strong 3rd leg and plenty of upside waiting for us. BTC will break 60k and finally go much higher.”
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