Bitcoin (BTC) continues to consolidate around $66,500, maintaining pressure on crucial resistance levels as whales show signs of “buying the dip.”
Despite short-term challenges highlighted by analyst Ali Martinez, such as the TD Sequential indicator signaling a sell order on the 12-hour chart, Bitcoin’s long-term prospects remain significant.
While the Bitcoin (BTC) price saw a strong bounce back after the Bitcoin halving event, it has been largely consolidating around $66,500. Bitcoin (BTC) maintained pressure on critical resistance levels as of April 24, with research indicating that whales were “buying the dip.” BTC’s price hovered around $67,000 following a surge in the latest daily close.
As per data from the monitoring platform CoinGlass, a bid wall of approximately $35 million on Binance was absorbed by the daily close, with the majority of ask liquidity now concentrated between $67,000 and $67,500. Popular crypto trading resource Material Indicators noted:
A 1-Month view of the order book illustrates how dynamic changes in liquidity placement impact overall price action. The NET effect of blocks of Bitcoin ask liquidity moving lower, and some blocks of bid liquidity moving higher tightens up the active trading range to roughly $62k – $68k.
Bitcoin Whales Buy Eyeing Push to $70,000
An accompanying chart also illustrated the trading activities among different categories of Bitcoin whales. Of particular note is the $1-$10 million order category, which, unlike others, expanded its exposure throughout April.
This supplements previous findings from research firm Santiment, with recent analysis uncovering “FOMO” among wallets holding balances ranging from 1,000 to 10,000 BTC ($66.7 million — $667 million). In its recent commentary on X, on-chain data provider Santiment reported:
Bitcoin’s key whale tier holding 1K-10K $BTC are supporting this rise, and have now accumulated 266K more $BTC since the start of 2024. This translates to an accumulation of 1.24% of the entire supply. The crowd is also showing a high degree of FOMO.
Courtesy: Santiment
The previous day, trading firm QCP Capital hinted that the cryptocurrency markets might experience a final period of low volatility before a significant change occurs. According to QCP Capital, Bitcoin (BTC) is currently positioned within the range of 60,000 to 73,000, with front-end volatilities of BTC dropping to around 60%. Last week, amidst concerns over the outbreak of conflict in the Middle East, coupled with the fourth BTC halving, the market experienced a degree of panic. However, tensions have since eased.
BTC Price Action Ahead
In recent developments in the cryptocurrency market, Bitcoin (BTC) faces short-term challenges despite significant whale accumulation, as noted by renowned analyst Ali Martinez. Martinez highlights a notable occurrence in Bitcoin’s price action, pointing to the TD Sequential indicator signaling a sell order on the 12-hour chart.
This signal coincides with Bitcoin encountering resistance at the midpoint of a parallel trading channel. Given the historical reliability of this indicator, investors are advised to exercise caution, particularly if Bitcoin’s price falls below the critical support level of $65,500. On the other hand, players like Standard Chartered have forecasted $150,000 target for the Bitcoin price by the year-end, as reported by Crypto News Flash.
In another aspect, Bitcoin’s monetary inflation rate has dropped below that of Gold. Consequently, according to the stock-to-flow thesis, Bitcoin is anticipated to surpass the market cap of Gold. Bitcoin analyst Willy Woo shared his perspective on this matter, stating, “In my view, BTC will lag its S2F valuation by 5-10 years; the world simply doesn’t move quickly. Custody infrastructure, regulations, trading instruments, and asset manager acceptance all takes time.” These insights shed light on the complex dynamics influencing Bitcoin’s trajectory in the current market landscape.
