MicroStrategy reveals a fresh BTC buy, but Bitcoin price action is still being held captive by the 200-day moving average.
Bitcoin (BTC) fell into the Wall Street open on April 5 after briefly passing $47,000.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader shows importance of 200DMA for Bitcoin
The pair was thus more or less at the same level as 24 hours previously, with the intervening period seeing volatility both up and down.
Amid an overall lack of direction, traders and analysts waited to see where the largest cryptocurrency would go next.
Popular Twitter account CivEkonom was optimistic, highlighting a CME futures gap at $54,000 as a potential target.
“Talk about compressed and coiling up. Should break up, but you never know,” he said as part of his comments on the day.
Fellow account Crypto Rover noted the significance of the 200-day moving average that Bitcoin was attempting to break through. Historically, success in doing so had led to significant price gains, he highlighted.
— Crypto Rover (@rovercrc) April 5, 2022
The firm’s Bitcoin treasury thus stood at 129,218 BTC, still by far the largest in the world. As Cointelegraph reported, however, plans by Blockchain protocol Terra meant that its own stash should ultimately surpass that of MicroStrategy and every other Bitcoin whale.
Analyst eyes impressive Q1 close
For trader and analyst Rekt Capital, meanwhile, there was much to celebrate in Bitcoin on higher timeframes.
In a series of tweets on April 5, he declared Bitcoin’s Q1 candle a successful achievement despite its price at the start of Q2 being practically the same.
#BTC – Quarterly
Bitcoin has Quarterly Closed below the Mid-Range resistance for three consecutive Quarters
But this past Quarter, $BTC managed to form an even Higher Low compared to the orange multi-Quarter Higher Low
— Rekt Capital (@rektcapital) April 5, 2022
“What’s interesting about BTC right now is that it is in the process of retesting the quarterly mid-range area as support on the weekly timeframe,” another post read.
Rekt Capital further signaled incoming volatility on the weekly chart, thanks to a tightening of the Bollinger Bands volatility indicator.
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