The retracement of Bitcoin could frighten latest entrants in the market, but long-term investors remain cool as they had seen such sharp price declines in the past. Firm indications of bearishness were seen as the numero uno cryptocurrency broke below $50,000.
Experienced trader Peter Brandt, popular for precisely predicting various price levels of Bitcoin in the past, has stated that the decline has just now started and there is more to go on the downside. In fact, he disclosed that a purchase order was placed by him at $32,501.
🙃😉🙃😉
I have entered orders overnight to buy $BTC at $32,501— Peter Brandt (@PeterLBrandt) April 23, 2021
Similar to other popular analysts, nevertheless, Brandt has a positive view of Bitcoin in the long-term. Like Brandt, another popular crypto trader, using the Twitter handle @Dilutionproof has forecast that $46,000 would be a crucial support level for BTC/USD.
#Bitcoin broke through its support zone at ~$53k (~$1T market cap) last night
Looking at the on-chain volume profile, ~$47k is the next large support zone, which coincides with the 🐳-version of the on-chain profile (~$45k-$48k) and a Fibonacci zone (~$46.8k) pic.twitter.com/R7SNI6z2n5
— Dilution-proof (@dilutionproof) April 23, 2021
Basically, there are several crucial support levels to look for. This includes bids from large-volume traders (whales) and investors, in addition to Fibo levels. So, it won’t be easy for the bears to push Bitcoin downwards.
20,370 #Bitcoin were net-deposited to exchanges in 24h.
This inflow is rivaled only by the March, 20 crash.
Yearly ATH. pic.twitter.com/5bFNbGPhyc
— Lex Moskovski (@mskvsk) April 23, 2021
Philip Swift, an analyst at trading suite Decentrader was in approval of the latest analysis. He said “I have also observed on the blockchain a lot of on-chain buying volume around $47-49K, which I expect to act as very strong support should we even get down to those price levels.”
“In addition, we are continuing to see big increases in the number of users on the Bitcoin blockchain, which is also bullish. So, while there has been a lot of fear on social media this week, I do not believe that there is a need to panic or be overly concerned about the price of Bitcoin right now.”
As per data provided by Glassnode, the quantum of Bitcoins deposited to exchanges in the past 24 hours was greater than any time since the March 2020 crypto market crash. Rekt Capital, another popular crypto analyst, has pointed out that the pattern is a regular one that was seen in several Bitcoin bull market.
The beginning of the Q2 price correction, happening about 80 days after the completion of the Q1 price correction which started at $42,000, is identical to the scenario that happened during the 2017 bull rally.
In 2017, a new #Bitcoin Bull Market correction would often occur ~50 days after the previous correction ended
Interestingly, the difference in amount of days between the 2017 Q1 & Q2 corrections was 79 days
In 2021, this difference between Q1 & Q2 corrections was 81 days#BTC pic.twitter.com/b7UmMAkSut
— Rekt Capital (@rektcapital) April 23, 2021
As Bitcoin faces sell off, altcoins are getting dragged down, but the trend may be short-lived. Swift has picked Ether (ETH) after the largest altcoin by market capitalization recorded fresh all-time peak this week. In general, altcoins may see another round of buying by investors who may regard Bitcoin as a costly asset.
He stated “Given the influx of new money entering the market and new entrants perceiving Bitcoin as ‘too expensive,’ I am expecting money to flow into altcoins.”
“That would cause Bitcoin dominance to drop for a period of time as certain alts outperform Bitcoin.”
Interestingly, Bitcoin’s market dominance fell below 50% for the first time since 2018.