Bitcoin price rose from a $30,000 support challenge to $ 35,000, continuing uncertain ranging which has worried traders
Bitcoin price rallied from fresh $30,000 support but continued uncertain swings worry traders. At press time, BTC is trading at $34,352, recording a 5% gain over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price bounces to $35,000
During the trading session a few hours ago, the BTC/USD pair touched $35,000 as a lot of positive news appeared. This increase is a good sign as a few days ago, as AZCoin News reported, BTC dropped back into the $30,000 region. As such, BTC has successfully prevented another drop below significant psychological support following last week’s volatility.
However, this was not enough to boost sentiment among traders, as many were convinced that the local BTC price had yet to bottom out.
For analyst Rekt Capital, the prospect of Bitcoin losing its 50-day exponential moving average (EMA) at $33,500, was cause for concern for bulls.
“The BTC recovery is promising but the 50 WEMA hasn’t yet been reclaimed as support. Weekly Close above ~$33500 would be enough to save the 50 WEMA as support”, he told Twitter followers.
As such, we can only continue to monitor that in the near term, whether BTC can continue to hold onto its current gains and use that as a bullish momentum. Although the current $34,352 level is already a more optimistic start to next week.
Moreover, via using Wyckoff analysis, Rekt Capital added that Bitcoin could still bounce by $10,000 to end in the mid-$40,000 range if a current wedge holds without a breakdown.
BTC/USD Wyckoff distribution chart | Source: Rekt Capital/ Twitter
On March 29, 2021, the price was 42.93% higher but there was also 9.54% more BTC held on centralized exchanges. Moreover, the price of BTC was $9,165 per unit, and today as BTC hovers above $33K per unit the price is 262% higher than last year.
Interestingly, there was a whole lot more BTC on exchanges on June 26, 2020, with statistics showing 2.79 million bitcoin was held in exchange reserves. Today, Bitcoin held on exchanges is 28% lower with data showing 1.99 million BTC on centralized trading platforms.
Bitcoin balances on exchanges | Source: Bybt.com
One of the assumptions from the crypto community is that, with reduced selling pressure, most investors are opting to store Bitcoin noncustodial private wallets. This potentially shows that most traders now prefer to hold in anticipation of a future price rally.
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