Bitcoin’s whales are buying the dip and this is what it means
Bitcoin’s price looks like it is in a rut after the recent crash that began on 5 April. This downswing confirms an ongoing consolidation that, fortunately, forecasts that a short-term uptrend is likely for BTC.
Bitcoin’s price has crashed by roughly 18% since 28 March from $48,238 to $39,141. This downswing came after rejection at the 200-day Simple Moving Average (SMA) at $48,190. Interestingly, the selling pressure was high enough to push the king crypto below the 50-day and 100-day SMAs at $41,993 and $41,386, respectively.
At press time, BTC was hovering below these significant levels and had set up the third higher low and fourth higher high since 20 January. Connecting these swing points using trendlines resulted in the formation of an ascending parallel channel.
While a breakout from this setup is bearish no doubt, there seems to be one last upswing in the works before a final breakout. For this optimistic scenario, the big crypto needs to pierce through the freshly flipped 50-day and 100-day SMAs and re-flip them into support levels.
Assuming the buyers make a comeback to push it through the said hurdles, the upside will be capped at the $46,117-barrier. Only in a highly bullish case can investors expect BTC to reach for the $50,000-psychological level.
This scenario also needs to shatter the 200-day SMA at $48,190 to reach the desired levels. Therefore, investors need to be careful of the risks involved and play it conservatively.
Source: BTC/USDT on TradingView
Further lending credence to this outlook is the recent spike in percentage increase in whales holding 1,000 to 10,000 BTC. Their holdings grew from 27.34% to 27.83 from 8 April. While the nearly 0.5% increase reveals a bullish narrative without a shadow of
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