- Bitcoin’s bullish bias attracted short-term profit-taking, leading to a narrow price range.
- BTC whales intervened, rekindling hopes of yet another $30,000 test.
If you’re like most crypto investors, chances are you’re expecting another test from Bitcoin [BTC] $30,000 range and maybe a bigger upside this time. Those expectations could make sense based on the fact that Bitcoin somehow recovered and avoided further downturns as of this writing. But here’s something you should know.
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While Bitcoin has held its own, it’s not out of the woods just yet. The bright side doesn’t look that strong, and recent findings have shown that traders have shifted their strategy in favor of short-term gains.
When comparing the absolute value of both realized gains and losses during both breaks above $30,000:
1⃣ $2.54 billion realized during the inaugural breakthrough🔴
2⃣ $289 million realized during the recent surge🔵
The current throughput is significantly lower than the initial outbreak. pic.twitter.com/Uvw3LefSva
— glassnode (@glassnode) April 30, 2023
According to Glassnode, there has been a recent surge in profit taking near the $30,000 range. This explains the resurgence of selling pressure every time the price moves into this zone. However, Bitcoin buyers may eventually run out, after which the selling pressure may resume. There is also a good chance that the whales will drive up the price.
What is Bitcoin’s Next Step?
Since Bitcoin’s next move depends so heavily on whale activity, let’s take a look at what the whales have been up to. Addresses with an amount equal to or greater than 1000 BTC were spinning on April 25 and have been piling up again over the past five days. This means the bulls could boost again above USD 30,000.
Source: Glassnode
We saw a significant increase in the amount of leverage in the market right before the previous crash, which happened after the $30,000 retest. The high leverage was an easy target for short sellers and whales looking to make a profit. This time, the market has significantly lower leverage due to the greater uncertainty in the market.
Source: CryptoQuant
How much are 1,10,100 Bitcoins worth today?
The lower leverage doesn’t necessarily encourage whales to push for liquidations. The fact that whales are also adding to the bullish momentum means it may be easier for the cryptocurrency to push back above $30,000. However, this depends on whether market conditions remain favourable.
At the time of writing, the statistics pointed to a market recovery, which, conditions permitting, could continue to gain momentum. Another FUD event could trigger the return of selling pressure, and the aforementioned short-term profit-taking could once again hamper BTC’s potential upside. However, another month may bring a different outlook, but that remains to be seen.