As Bitcoin (BTC) is trying to reclaim the psychological level at $30,000, some conclusions can be drawn about its present activities, as well as the outlook for the future, as presented in the deep analysis carried out by the cryptocurrency trading expert Michaël van de Poppe.
Specifically, van de Poppe explained in detail the historical price action of Bitcoin, including the bear markets in 2019, 2020, and 2021, as well as “a heavy one in 2022,” during which time the long-term holders have been accumulating their positions, as he said in his YouTube video streamed on April 27.
“We see that, in the recent correction of the markets, long-term holders have been getting massively into Bitcoin, which is fuelling a case that you want to accumulate your position as well. It’s not telling you that the bottom is in, but it’s telling you that we are getting into a phase where long-term holders are interested, and the long-term holders are usually the bulls.”
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Accumulation versus selling
As he noted, “in 2021 and 2022, we’ve been seeing accumulation, even in the periods around $15k to $18k when the FTX collapse took place. (…) In this recent correction, we can see the exact same, which is a huge spike in accumulation, which once again says they are strongly believing in a bullish cycle or bullish continuation for the markets for Bitcoin.”
In van de Poppe’s view, it is the Bitcoin miners that are pushing the price down, as the on-chain data shows them selling their Bitcoin “to sustain their business, so once they start to sell, they get additional sell pressure on the markets, and that could fuel the markets in the downwards for a little bit more” as they created a “chain reaction and liquidations.”
“We see a sharp sell-off from the amount of holdings for the miner reserve, (…) and the price of Bitcoin was consolidating around $30k, and then [it] has been falling towards $27 and a half and as a result (…) miners have been selling their Bitcoin – actually they have been selling around 6,000 BTC in the past week, which additionally resulted into Bitcoin falling from above $30K towards $27k.”
Bitcoin technical analysis
In terms of its technical analysis (TA) indicators, “Bitcoin has seen a correction around $31k because prices have been reacting massively in this range,” as has happened before in early 2021 and in summer 2022 when the rejection area became resistance.
On the other hand, van de Poppe believes that the next potential resistance points that should be looked at are between $41,000 and $47,000 – and “this is the crucial next area that Bitcoin might find itself in if it breaks through $30k.”
“As long as Bitcoin stays above $25.4k, there is a likely case of continuation taking place on the trend, and then we can see expectations of Bitcoin to $41k to $47k unless Bitcoin is going to have a breakdown beneath $25k, which as a result is going to bring the prices back down towards $20k again or $19k.”
Meanwhile, Bitcoin is currently trading at the price of $29,039, down 2.35% on the day but recording a 0.71% gain across the previous week and a 6.83% increase over the past 30 days, as per the latest chart data retrieved by Finbold on April 27.
Whether Bitcoin manages to break through the $30,000 again and reach the next crucial resistance area projected by the crypto expert will depend on the developments directly involving the flagship decentralized finance (DeFi) asset, as well as the general crypto market and macroeconomic atmosphere.
Watch the entire video below:
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
