Is the BTC correction over? Do not open long in a hurry!
After a short drop to $38,000, Bitcoin managed to climb above $41,000 — does this indicate the end of the correction? Check out the thoughts of BTCNEXT analysts and find out the next move!
1–20 April main events
- Hackers attacked the Beanstalk DAO DeFi protocol and withdrew about 24,830 ETH, worth $75 million.
- Tornado Cash complied with U.S. sanctions and blocked addresses linked to the $625 million Ronin sidechain hack.
- Microstrategy purchased 4,167 BTC for $190.5 million — the company holds a total of 129,218 BTC.
- Bitcoin miners have mined 19,000,000 BTC — it will take another 120 years for the remaining 2,000,000 BTC.
The week closed under the psychological level of $40,000, which opened the way to $36,600-$37,400 and to $30,000. A new week opened under the Ichimoku cloud. If the price does not quickly come back inside the cloud ($40,300-$50,600), the current correction and accumulation may drag on until mid July. At the moment, the price has managed to return to above $41,500. To break the downtrend, it is necessary to close the week above $43,000.
The Fear and Greed Index is in the zone of extreme Fear at 24 points. The funding rate is below zero, which indicates lots of shorts and a complete knockout of longs. Open interest dropped to $17.5b. The drop under $40,000 liquidated only $130m long positions, which confirms the liquidation of long positions in early April. Over the past week, $40,000 worth of coins were withdrawn from exchanges. Purchases have begun to appear, but the preponderance of sales still remains (Buy: 1,352 BTC vs. Sell: 1,498 BTC). There is a tight support block at $37,000-$38,000 in the order book. The resistance block is in the range of $44,500-$45,200.
Despite breaking through the psychological mark of $40,000, the bulls managed to regain control of the situation and return the price to above $41,000. To complete the correction and move into an uptrend, it is necessary to close the weekly candle above $43,000. The overall growth of the altcoin market depends entirely on the movement of BTC. For now, you should refrain from buying altcoins.
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