The cryptocurrency market rally that began on April 1 ran into tough resistance on April 4, sparking a market-wide pullback during the afternoon session after exhausted bulls were overwhelmed by bears who managed to push Bitcoin (BTC) below $45,200.
Data from Cointelegraph Markets Pro and TradingView shows that once the afternoon sell-off broke below support at $46,000, the price of BTC hit a daily low of $45,133 before buyers emerged to bid it back above $45,700.
BTC/USDT 1-day chart. Source: TradingView
Here’s what several analysts are saying about the short-term outlook for Bitcoin and what could be in store moving forward in April.
Flipping resistance into support
April 4’s weakness on the Bitcoin chart was spotted early by crypto trader and pseudonymous Twitter user ShardiB2, who posted the following chart noting that its price was “starting to reverse” with the 4-hour candle coming close to the bottom of the channel.
BTC/USD 4-hour chart. Source: Twitter
The trader said,
“Could we slip to $44,300? Possibly, but if we do, I [don’t] think it gets any deeper, the ONLY thing that is concerning is maybe tax selling, saw some last year…”
A more general explanation of the current price action was offered by on-chain data analyst Matthew Hyland, who posted the following chart outlining the major support and resistance levels for BTC in its current price range.
BTC/USD 1-day chart. Source: Twitter
“Bitcoin is trying to flip previous resistance into new support.”
Signs of heavy accumulation
Insight into which players in the market have been most actively accumulating Bitcoin lately was discussed in the most recent newsletter from on-chain analysis firm Glassnode, which noted that “shrimp and whales are the most aggressive accumulators of late.”
On the whale side, Glassnode pointed to “large public buyers such as the Luna Foundation Guard and MicroStrategy,” which have renewed their “emphasis on Bitcoin as pristine collateral” and “have commenced serious accumulation over the last two weeks.”
This whale accumulation can be seen in the red highlighted box on the following…