Key Takeaways: –
- The recent decline in Bitcoin’s price may be beneficial for long-term holders, as it has led to an increase in whale transaction counts.
- The approval of a Bitcoin ETF by the Securities and Exchange Commission (SEC) could be a major catalyst for a rally in Bitcoin’s price.
- Michael Saylor, the founder of MicroStrategy, believes that Bitcoin’s value will multiply tenfold to reach $250,000.
- The $26,400 level is an important level for Bitcoin, as a break above could lead to a rally toward $27,000.
The investors were really happy when Bitcoin started its bullish reversal at the beginning of the year. Many even started predicting a new all-time high. But the three-month-long congestion period has shattered all hopes. And it has now spread confusion about whether Bulls can pump the Bitcoin any further or not.
The following Bitcoin weekly news may shed some light on whether Bulls still have the strength to pump Bitcoin’s price or not.
Why Bitcoin is Struggling to Break the $26,600 Level?
Last week, Bitcoin went above the $26,600 level after strong buying pressure. But the price couldn’t sustain and again entered the previous zone. Analysts claim that the interest rate is a major reason why investors are doubtful about Bitcoin’s price direction. Bitcoin and Ethereum’s prices remained relatively stable during the last week following the recent pause in interest rates.
However, analysts say that Bitcoin bulls are waiting for the rate cuts to pump the price further. The analysts say that the bullish sentiment should stay intact as long as the price is above the range of $20,000 and $22,000 because Bitcoin’s dominance has significantly increased following the selling pressure in other crypto tokens.
BlackRock’s Bitcoin ETF can be a Big Deal
BlackRock, one of the leading investment firms, is trying to register a spot Bitcoin exchange-traded fund with the Securities and Exchange Commission. Although there’s a discussion going on about whether it will be a trust or an ETF, the major belief is that the fund will act like an ETF once it’s approved.
This new ETF can attract a higher amount of investment while addressing liquidity problems. The chances of the fund’s approval are a bit high because it has heightened market surveillance features. However, the final decision is still uncertain. But the price and perception of Bitcoin will significantly increase if the iShares Bitcoin Trust is approved.
The Recent Decline Maybe Beneficial for Bitcoin Holders
Bitcoin’s price dropped significantly after hitting the $31,000 level. But the buyers immediately took control and a tough fight is now going on between the buyers and the sellers. The data shows that the presence of buyers is increasing rapidly. So, it may lead to a positive rally.
There were two green sessions during the last week when the price of Bitcoin increased by 8%. Some traders are expecting a recovery rally because Bitcoin is now establishing a higher-high pattern. After such a long consolidation Bitcoin will potentially break out of the resistance. And it will eventually hit the $41,200 level. Some traders claim that $35,200 can be a good point for profit-taking if the price breaks out.
The most important part is that whales transaction count has significantly increased during the two green sessions of the last week. It means that the whales are potentially accumulating Bitcoin at lower rates. The bullish thesis will become invalidated if the price broke below $24,000. The traders think that the price will find support around $21,300 after breaking below the $24,000 level.
Bitcoin Price Prediction by Michael Saylor, Founder of MicroStrategy
Michael Saylor, the founder of MicroStrategy, says that the industry will start focusing on Bitcoin due to the recent enforcement actions by U.S. regulators. He states that the institutions will be more focused on proof-of-work tokens because they offer more security. MicroStrategy is accumulating Bitcoin since 2020.
Saylor believes that Bitcoin’s value will multiply tenfold to reach $250,000. He says that the crypto exchanges currently do not understand Bitcoin’s dominance. But they will soon start adapting their business models around Bitcoin after recognizing its importance.
$26,400 is an Important Level
Although the last week showed some volatility, Bitcoin managed to stay above $26,000. Most market participants are currently waiting for a clear trend before opening a new position. Short-term traders are expecting $26,400 as an important level. They claim that Bitcoin will reach $26,900 and $27,300 respectively after breaking out of this level.
However, the other group of traders claims that the price will dip to around $23,000 before hitting the $27,000 level. Bitcoin’s price may also be affected by the Purchasing Managers’ Index (PMI) data and the Federal Reserve’s monetary policy. It’s also worth noting that the correlation between Bitcoin and traditional assets has weakened recently.
Bitcoin Weekly Technical Analysis
Since April 13, Bitcoin is following a sideways price movement. A parallel channel was formed on the daily chart but it became ineffective as discussed in the last week’s article. A triangular pattern can now be seen only daily chart that is shrinking regularly. It’s worth noting that Bitcoin is following a lower-low pattern since April 13.
So, it may again find some resistance at the upper trend line which is close to $27,000. And it may eventually make another lower-low.
An inverse head-and-shoulders pattern can also be observed on the daily chart. This pattern usually indicates bullish momentum. However, the traders are waiting for the pattern confirmation before opening a new position.
The Bitcoin market is currently in a holding pattern. The price is likely to remain range-bound until one group of investors gains the upper hand. However, there are some positive signs for the bulls, such as the increase in whale transaction counts and the potential approval of a Bitcoin ETF.
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