W Power 2024

Bitcoin's bullish momentum sees a brief respite

The primary reason would be the Consumer Price Index (CPI) print as the market waits to move

Shashank Bhardwaj
Published: Apr 11, 2024 10:39:39 AM IST
Updated: Apr 11, 2024 04:11:30 PM IST

Bitcoin's bullish momentum sees a brief respiteImage: Shutterstock

Bitcoin is seeing quite a firm resistance around the $70,000 price mark, going from over $72,000 on April 8 to below $68,500 on April 9 and now back to revolving around the $68,800 price point on April 10. While the overall gains in the past seven days are near 3.6 percent, macroeconomic data could spark a further downside in the coming days.

The Consumer Price Index (CPI) print, due for release on April 10, has been identified as a potential catalyst for price declines. In the meantime, Bitcoin whales are attempting to lower prices to enter fresh long positions.

It would seem that the bullish momentum has faded or momentarily halted, and the price has yet to make a solid move toward the current all-time high of $73,800, let alone beyond.

The strategy of whales exploiting market volatility around economic reports is not uncommon. Material Indicators, a trading resource, has observed this behaviour frequently around such circumstances. They stated, “If Wednesday’s Core inflation numbers are “hot,” whales could potentially extend the downside move, only to long the dip and exploit the upside liquidity void they created for a quick move.”

According to a tweet by Rekt Capital on April 9, Bitcoin (BTC) is facing difficulty in breaking through the $71,300 mark. The currency is stuck between its previous all-time high of $69,000 (which serves as support) and the highs from two weeks ago of $71,300 (which is now acting as resistance). As a result, there may be some consolidation in the near future.

Another frontier to look at in any discussion involving BTC would inevitably be the US-based spot Bitcoin ETFs currently in play. The pressure on these spot Bitcoin ETFs persisted with a net outflow of $200 million on April 9, largely driven by a significant outflow from the Grayscale Bitcoin Trust (GBTC).

In relevant news, it was revealed that about 1.94 million Bitcoins are held in exchange wallets, representing approximately 9.8 percent of the total circulating supply of 19.67 million Bitcoins. The trend of decreasing Bitcoin reserves on exchanges has been consistent since it reached its peak in July 2021 at 2.85 million BTC. This shows investors are more interested in holding rather than trading or selling, a point for the long-term potential of BTC.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash

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