Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- BTC fluctuated in April 2023 but posted a 4.5% gain.
- BTC supply is tightening as more than 54% remained unmoved for more than 2 years.
Despite the fluctuations in April, Bitcoin [BTC] ended the month in the green. The king coin in particular made a new monthly high of $31,000 but pulled back sharply amid macro headwinds. It recouped some of the losses as it went to press, posting more than 4.5% at the end of April.
Source: Coin360
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In addition, whales quietly collected more than 64,000 BTCs when the coin fell in the second half of April. Could these May whale strikes spark a new monthly high despite the upcoming FOMC meeting?
🐳 #Bitcoin whales have been quietly building back up since profits topped $30k on April 11th. Since this date, when prices faltered and fell slightly, addresses contained 100 to 10,000 $BTC together put 64,094 coins back in their bags. 💰https://t.co/Lx3msF58Wo pic.twitter.com/zUQC4BaW6F
— Santiment (@santimentfeed) April 29, 2023
BTC teetered below $30k
Source: BTC/USDT on TradingView
The price level of BTC mirrors the May 2022 lows. In early April, BTC broke above its $26.8k – $28.6k range, but reached rising trendline resistance (solid white line). The resistance to the trendline led to profit taking after BTC surged above $30,000, causing it to fall slightly and falter afterwards.
But bulls have firmly defended the $26.8k support, reinforcing bullish sentiment. As such, bulls might try to rally to the ascending trendline resistance near $32.4k. Above the aforementioned resistance, the other obstacles were at $34.3k and $37.5k.
On the other hand, bulls could try to prevent a further drop to $25.25k if the $26.8k support bursts. The March lows of $20,000 could halt any extreme retracement above $25,000.
Meanwhile, the RSI pulled back from lower ranges, confirming increased buying pressure. However, volume and OBV declined slightly and stagnated after mid-March, indicating limited demand over the same period.
The supply of BTC continues to tighten
Source: Glassnode
Read Bitcoins [BTC] Price prediction 2023-24
According to Glassnode, 54% of the BTC supply remained unmoved for more than two years at press time. It means that the supply of BTC is tightening and also indicates the asset’s long-term bullish outlook, despite recent price swings.
In terms of the futures market, the open interest (OI) rate rose from $11.548 billion on April 1 to $11.755 billion on April 30, as of this writing. It confirms some mild bullish momentum in April, despite price swings over the same period. Will the OI, Whale Strike, and Tightening Supply Support BTC Value in May?