BTC stocks correlation ‘not what we want’ — 5 things to know in Bitcoin this week

Bitcoin (BTC) starts the second week of April with a whimper as bulls struggle to retain support above $40,000.

After a refreshingly low-volatility weekend, the latest weekly close saw market nerves return, and in classic style, BTC/USD fell in the final hours of Sunday.

There is a feeling of being caught between two stools for the average hodler currently — macro forces promise major trend shifts but are being slow to play out, while “serious” buyer demand is also absent from cryptoassets more broadly.

At the same time, those on the inside show no hint of doubt about the future, as evidenced by all-time high Bitcoin network fundamentals and more.

The combination of these opposing factors is price action that simply does not seem to know where to go next. Can something change in the coming week?

Cointelegraph takes a look at five potential Bitcoin price cues as a retest of $40,000 looms closer.

No “massive drawdown” for BTC?

Monday is starting out with a reclaim of $42,000 for BTC/USD, which the pair briefly lost overnight as it dipped into the weekly close.

Hitting $41,771 on Bitstamp in the process, Bitcoin thus saw its lowest levels in weeks, matching those from March 23.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

In doing so, the largest cryptocurrency likewise gave up all of its gains from the intervening period to fall back to the top of its trading range from last month. This could end up being a retest of previous resistance as support, however, and instead of fearing the worst, many traders are hopeful that a reversal would soon kick in.

“Bullish retest of flipped weekly level, finex whale filling bids, I’m buying the dip. If you want to wait for confirmation you can wait for a monthly close to confirm,” popular Twitter user Credible Crypto wrote as part of comments overnight.

Credible Crypto was commenting on both Bitfinex whale buying and fresh chart data, which shows that Bitcoin’s Aroon indicator has flipped bullish in recent days.

Designed to identify uptrends or downtrend in an asset, Aroon has only delivered such bearish-to-bullish “crosses” six times since 2017 — the…



Recommended For You

Leave a Reply