The Bitcoin price is in range mode, tethering on average at around $59k as BTC bulls fail to breach $60k–an important psychological level traders are closely tracking.
As of writing on Apr 6, the Bitcoin price is changing hands at $59.5k, adding three percent week-to-date.
However, the Bitcoin price is up four percent versus a resurgent greenback on the last trading day despite its market dominance shrinking to 58.4 percent.
The BTC/USD price accumulation is also with a sharp increment in participation.
For instance, on the last day of trading, the average trading volumes rose 106 percent to $112 billion, thrusting the coin’s market cap to over $1.1 trillion.
Bitcoin is incomparably liquid at these levels, a precursor for higher highs above $62k—marking Mar 2021 highs.
Bitcoin Price Overview
Overly, the Bitcoin price is firmly bullish adjudged from Q1 2021 stellar performance.
Still, the BTC/USD finds itself in consolidation within a tight $3.5k range with caps at $60k on the upper end and $55.5k as the buy wall.
Technically, this is bullish. Even so, there could be hints of weakness since the rally of the last ten days is with relatively low trading volumes.
Moreover, there hasn’t been a conclusive, high-volume close above Mar 2021 highs, unwinding losses of late Feb 2021 in a trend continuation pattern of Q1 2021.
Accordingly, risk-averse traders can hold on their cards until there is a trend-defining breakout.
Bitcoin Market Movers
Bitcoin market cap stands at $1.1 trillion with a market dominance of 58.4 percent in a $2 trillion crypto valuation.
The BTC coin acts as a store-of-value and a medium of exchange. Reflecting these attributes is the ramp-up from public and private investors.
MicroStrategy now holds over 91k BTC, purchasing $15 million worth on Apr 5.
Microstrategy spent $2.2 billion on 91,579 bitcoin over the last few months.
Their bitcoin position is now worth $5.3 billion, which means a $3+ billion increase in value of the bitcoin they purchased.
While Wall Street is laughing, Michael Saylor is winning.
— Pomp 🌪 (@APompliano) April 5, 2021
The public firm has netted over $3 billion in profits from their holding. Their BTC reserves are only $1.5 billion short of its $6.9 billion market cap.
More companies hold BTC:
— Crypto Rand (@crypto_rand) April 5, 2021
Bitcoin also finds application as a medium-of-exchange in Africa. BTC use rose 27 percent in Q1 2021, according to records:
Peer-to-peer #bitcoin trading in Africa grew by +27% in the last three months, the largest increase of any continent.
— Documenting Bitcoin 📄 (@DocumentingBTC) April 5, 2021
Meanwhile, 80 percent of institutional-grade investors want to learn more about Bitcoin, according to NYDIG:
80% of investors want to know more about #Bitcoin
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) April 5, 2021
Bitcoin held by custodial exchanges, in the mean-time, is at record lows:
#Bitcoin coming onto Exchanges is at a 14-month low.
Nobody wants to sell at these price
💎 🙌 pic.twitter.com/oTNalBzU4k
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) April 5, 2021
On the other hand, miners are confident and prefer to HODL their BTC:
Update on miner net position change.
Still not selling, still accumulating, clear trend. pic.twitter.com/lGXui84hOp
— Lex Moskovski 🐙 (@mskvsk) April 5, 2021
Bitcoin Price Prediction
The Bitcoin price is on an uptrend, relatively stable but bullish from a top-down perspective.
Year-to-date, the Bitcoin price is up 7.3X, exceeding expectations and pumping on macro-economic uncertainty.
From the daily chart, the path of least resistance is northwards. However, there must be a break above $60k and Mar 2021 highs of $62k for buyers to be in charge. Presently, the BTC/USD is trending inside a $3.5k channel with relatively low trading volumes.
Accordingly, it doesn’t discount the possibility of the BTC/USD price sliding below $55k in reflection of late Feb and Mar 2021 price action. Bitcoin bulls must maintain prices above the middle BB. This builds the ground for a close above $62k.
Risk-averse traders could wait for trend definition. A break above $62k may spark further demand, aligning the trend to the past three months of stellar gains and a target of $94k—the 1.618 Fibonacci extension level of the Q1 2021 trade range.
On the reverse side, losses below $55k and the middle BB—visible in the daily chart, may spark a sell-off with immediate targets at $50k and $42k.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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