Bitcoin’s (BTC) downward price movement appears to have come to a halt as the leading cryptocurrency aims to establish a solid foundation above the $27,000 position. This comes just days after failing to sustain gains above the $30,000 mark.
Despite the downturn, pseudonymous crypto analyst El_crypto_prof in a tweet on April 23 suggested that the losses might be short-lived. According to the analyst, historical data points to a potential bull run for Bitcoin, following what he termed as the end of smart money accumulation, which was signaled by the Quantitative Qualitative Estimation (QQE) surpassing zero.
“Smart money is done accumulating BTC. I told you a few weeks ago that once QQE >0 = Accumulation ends. We always saw a strong bull run afterward.<…> And bears are happy about a few red candles,” he said.
What next for Bitcoin?
Elsewhere, crypto trading expert and analyst Michaël van de Poppe, in a tweet on April 23, also pointed out Bitcoin is still facing crucial resistance at $27,800.
In this line, he projected that if Bitcoin experiences a lower test, it could lead to bullish divergences.
“Bitcoin still facing crucial resistance and rejected at $27,800. One more test lower would generate bullish divergences and opens up opportunities for long plays toward $28,700. Casual Sunday/Monday dump and reverse after. Funding rates are also, finally, resetting,” he said.
Meanwhile, as previously reported by Finbold, Bloomberg’s senior commodity strategist Mike McGlone predicted that Bitcoin would likely experience a short-term pullback after plunging below $30,000. However, he remains bullish for the long-term outlook.
Bitcoin’s latest correction occurred shortly after the asset surpassed the $30,000 mark for the first time in about 10 months. This surge was attributed to Bitcoin taking advantage of the United States banking sector crisis and the optimism surrounding the Federal Reserve’s stance on inflation.
The correction has seen Bitcoin lead the broader market in short-term losses partially in reaction to the high United Kingdom inflation data. This development has sparked concerns about higher-for-longer interest rates, which has contributed to the sell-off in Bitcoin and other risky assets.
Bitcoin price analysis
As of press time, Bitcoin was trading at $27,666, reflecting a gain of roughly 1.4% in the last 24 hours. However, over the past seven days, Bitcoin has suffered losses of about 9%.
Meanwhile, Bitcoin technical analysis from TradingView suggests a neutral stance. The one-day gauges summarize as ‘neutral’ at 8, with moving averages at 1. Oscillators, on the other hand, suggest a ‘sell’ sentiment at 3.
As things stand, Bitcoin investors will be looking at renewed bull activity to help the maiden crypto avoid further correction.
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