This week’s decline is “unconvincing,” according to analyst Filbfilb, echoing others’ concerns about the possibility of a short-term bullish continuity.
Bitcoin (BTC) narrowly regained its losses on Thursday, as new questions about the bull run’s continuation this month arose.
$56,760 “not a convincing bottom”
After sliding 5% on Wednesday, BTC/USD saw only a modest rebound to circle $57,000 at the time of writing, TradingView showed.
Following multiple failed attempts to crack resistance close to all-time highs, analysts were becoming wary of a further dip and a temporary halt to further price gains.
Filbfilb, co-founder of trading suite DecenTrader, described this week’s current floor of $56,760 as “not a convincing bottom.”
Funding rates of trading platforms, as reported on Wednesday, call for a shakeout of leveraged long positions from those too optimistic on a continuity. Those prices, according to Filbfilb, are still “way too high,” he told subscribers to his Telegram trading channel.
Meanwhile, famous Twitter trader Cantering Clark pointed out that Bitcoin’s 20-week moving average (MA) — a classic “line in the sand” for market success — is already hovering around $40,000.
“More fuel on why I think April-May puts a cap on $BTC until later in the year,” he said in response to a comparison table.
“Simple as it is, this 20 week MA with a 2 standard deviation band above. At some point, these meet. Either it comes to us or we come to it. Hard to imagine this takes plus much higher up.”
Macro turns favorable for Bitcoin bulls
Despite the fact that investor interest has remained strong in recent weeks, fueled by big new adoption announcements from banks, signs of a downturn were starting to emerge on the day.
The Purpose Bitcoin ETF saw a marginal decrease in its BTC holdings after years of steady growth, with assets under management falling from highs of $976 million to $944 million.
Meanwhile, Grayscale Bitcoin Trust (GBTC), another institutional portal, retained its negative premium, a development that has stymied further Bitcoin accumulation since February.
But not everyone was wholly gloomy. For trader Crypto Ed, the ultimate market trajectory was clear.
“Not in a rush to get in a position,” he told Twitter followers on Thursday.
“54k first or up from here, both mean we’re starting a strong 3rd leg and plenty of upside waiting for us. BTC will break 60k and finally go much higher.”
Beyond crypto, a buoyant outlook for United States stock markets coupled with a weakening dollar could further serve Bitcoin’s purpose in the short term.
“With excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic…U.S. economy will likely boom,” noted Jamie Dimon, CEO of JPMorgan Chase, released his annual shareholder newsletter earlier this week.
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