By Shelly Melancon (Switzerland)
Bitcoin (BTC) appears to have discovered a reliable foothold at $29,890 following recent dips beneath the mark. The swift recovery plus a retest will reflect bulls’ vigor and determine Bitcoin’s upcoming directional bias.
Bitcoin to Offer Temporary Gains
Bitcoin had its price printing a bearish continuation setup (bear flag) between November last year and April 2022. Meanwhile, late April’s brief consolidation saw BTC catalyzing a breakout from this pattern, translating to a colossal sell-off.
The setup comprises an enormous drop known as a flagpole accompanied by a consolidation period, the flag. Breakouts from these patterns often lead to price extending its fall. Thus a continuation formation.
The technical setup predicts a 46% drop obtained by adding the flagpole’s tallness to the breakout zone. The leading crypto pierced the flag’s bottom trend-line near $40,032 on 22 April, revealing $21,584 as the target.
The volatility after the FOMC meeting plus the LUNA-UST crisis triggered a ferocious crash in the crypto world. That saw Bitcoin plummeting to $25,333, translating to turmoil in the altcoin market. Nevertheless, Bitcoin’s recovery appears on the right foot as the token hover beyond the support floor of $29,100.
Also read:If bulls ensure a retest, it will mean a possible upside move for Bitcoin. Such scenarios can see the world’s largest crypto moving towards $35,100. The upswing would mean a 17% total gain, and the high can cap BTC’s uptrend.
Also, the latest Luna Foundation Guard tweet removed uncertainty by retail investors. The post revealed that LFG sold around 80,081 Bitcoin from the reserve of 80,394 $BTC. The news indicated that more declines are unlikely, which might see buyers bidding again. Meanwhile, the tweet added that LFG would use the remaining assets to refund lasting UST users. Meanwhile, updates will follow soon as the foundation debates various distribution ways.
The exchange supply chart supports this narrative for BTC price. This metric measures total assets on exchange, which might mean possible sell-side pressures. Sell-offs would see investors panic selling, leading to massive sell orders that might intensify the decline.
For Bitcoin, assets on centralized platforms saw a 50,000 BTC decline, reflecting a slump in the possible sell pressure. That matches the bullish narrative from the technical viewpoint. Thus, market players can expect a rally for Bitcoin soon.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.