Bitcoin Calms Near Monthly Support Level! Will Bulls Revive BTC Price Next Week?

Bitcoin Calms Near Monthly Support Level! Will Bulls Revive BTC Price Next Week?

Time Stamp: April 22, 2023 1:03 PM
Source Node: 2068620

The Bitcoin market has faced a tumultuous ride, with the digital currency struggling to find stable ground amidst swirling financial currents. Recent news of potential interest rate hikes caused a sharp selloff that sent Bitcoin plummeting below $30K, erasing its monthly gains. With BTC’s price falling by over 8% in just a few days, sellers have been flexing their muscles. Despite these challenges, Bitcoin appears to have steadied itself at its monthly support level, offering a ray of hope to investors for a possible bullish reversal in the coming week.

Bitcoin Shows Bullish Sign Amid Turmoil

A recent analysis of on-chain data has revealed a notable spike in Bitcoin exchange outflows, potentially signalling a bullish trend for the cryptocurrency’s price. A CryptoQuant analyst highlighted that a significant 2,138 BTC had been withdrawn from centralized exchanges in just the past day, sparking renewed interest among market watchers.

The “exchange outflow” metric tracks the total volume of Bitcoin being removed from wallets associated with centralized exchanges. A sharp increase in this indicator can be interpreted as a sign of bullish sentiment, as it suggests that investors are opting to hold their assets in anticipation of a price increase rather than trading them on exchanges.

The recent surge in large withdrawals from cryptocurrency exchanges has occurred while Bitcoin’s price hovers around the lower $28,000 range—a relatively low level compared to its position above $30,000 just a few days prior. This phenomenon suggests that these transfers out of exchanges could indicate new buying activity in the market.

A closer look at the chart also reveals that exchange inflows remain low during the same period, signifying a lack of deposits to counterbalance the withdrawals. This pattern implies that, for the time being, there may be no additional interest in selling at the current price levels.

Is Rebound For BTC Price On The Horizon?

Bitcoin price has stopped dropping further as it found a stable support level at $27.5K. After forming a low near $27,140, Bitcoin has climbed above the 23.6% Fib level, hinting that investors are accumulating BTC in the dip. 

As of writing, BTC price trades at $27.6K, declining over 1.47% in the last 24 hours. If BTC price falls below $27K, it may experience a decline, first to $26,400, and then potentially to the neckline of the inverse head-and-shoulders (H&S) pattern at $25,500. 

However, a rebound is likely expected from $27K, and bulls may send the BTC price above the EMA-20 trend line. If Bitcoin breaks above $27.8K, a bullish rally may continue toward $28.5K. A successful breakout above EMA-20 will again push the BTC price to its previous bullish range of $30K. 

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