Bitcoin gears up for a ‘strong bull run’ as smart money accumulation ends
Bitcoin’s (BTC) downward price movement appears to have stalled as the leading cryptocurrency aims to establish a solid foundation above the $27,000 position. This comes just days after it failed to sustain gains above the $30,000 mark.
Despite the downturn, pseudonymous cryptanalyst El_crypto_prof in a chirping on April 23 suggested that the losses may be short-lived. According to the analyst, historical data points to a potential bull run for Bitcoin, following what he termed the end of smart money accumulation, which was signaled by the Quantitative Qualitative Estimation (QQE) crossing zero.
“Smart money is done accumulating BTC. I told you a few weeks ago that when QQE >0 = Accumulation ends. We always saw a strong bull run afterwards.<...> And bears are happy with some red lights, he said.
What next for Bitcoin?
Elsewhere, crypto trading expert and analyst Michaël van de Poppe, in a chirping April 23, also pointed out that Bitcoin still faces crucial resistance at $27,800.
In this line, he suggested that if Bitcoin experiences a lower test, it could lead to bullish divergences.
“Bitcoin still faces decisive resistance and was rejected at $27,800. A lower test would generate bullish divergences and open up long-play opportunities towards $28,700. Casual Sunday/Monday dump and reverse after. Funding rates also reset finally,” he said.
Meanwhile, as previously reported by Finbold, Bloomberg’s senior commodity strategist Mike McGlone predicted that Bitcoin would likely experience a short-term decline after plunging below $30,000. However, he remains optimistic about the long-term outlook.
Bitcoin’s latest correction came shortly after the asset passed the $30,000 mark for the first time in about 10 months. This increase was attributed to Bitcoin capitalizing on the crisis in the US banking sector and optimism surrounding the Federal Reserve’s stance on inflation.
The correction has seen Bitcoin lead the broader market in short-term losses, partly in reaction to the high UK inflation data. These developments have sparked concerns about higher-for-longer interest rates, which has contributed to a sell-off in Bitcoin and other risky assets.
Bitcoin price analysis
At press time, Bitcoin was trading at $27,666, reflecting a roughly 1.4% gain over the past 24 hours. However, over the past seven days, Bitcoin has suffered losses of around 9%.
Meanwhile, Bitcoin technical analysis from TradingView suggests a neutral stance. The one-day gauges summarize as “neutral” at 8, with moving averages at 1. Oscillators, on the other hand, suggest a “sell” sentiment at 3.
As things stand, Bitcoin investors will be looking for renewed bull activity to help the maiden crypt avoid further correction.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
