Just this week, Carl Icahn, the billionaire investor, spoke to Bloomberg about his intentions about joining crypto- mainly bitcoin. But it hasn’t made any difference in the prices of major cryptocurrencies– which proves that the undercurrent is bearish with most crypto markets not being favorable to the news.
Yet, this doesn’t entail that the bulls have stopped purchasing. Micah Spruill, the managing partner of S2F Capital, mentioned that on-chain data has displayed that BTC whales have been purchasing 10,000 BTC with the retail traders holding at lower levels.
Cathie Wood, the CEO of ARK Investments mentioned that most of the emerging central banks would be buying Bitcoin in order to safeguard their balance sheets. This could also be because the banks have an idea that most of the cryptocurrencies are plummeting, with their reserves going down.
This implies that traders need to supervise the fundamentals of BTC, and the ensuing crypto sector since it would be driving a price action over the long term. For the short term, most of the sentiment of the traders plays quite a role in shaping how the trend goes.
Price Analysis of Bitcoin
The pullback for Bitcoin didn’t even reach the Fibonacci retracement levels of 38.2% at a level of $41,269- which implies that most of the traders were closing in on their positions towards minor rallies. The exponential moving average over 20 days would downslope, with the relative strength index RSI moving in the negative territory. This indicates that the bears have wrestled control over the cryptocurrency.
If the pair of Bitcoin/US Dollar goes below $34,000, the decline would extend up to the critical support price of $30,000. The bullish traders, it is expected, will be defending this support quite ferociously.
