• The cryptocurrency market saw sharp volatility on April 26 due to rumors of large sums of Bitcoin (BTC) moving from wallets linked to the defunct cryptocurrency exchange Mt. Gox and the US government.
• Bitcoin and select altcoins managed to hold their respective support levels despite the selling pressure.
• The next major event for the market is likely to be the US Federal Reserve’s meeting on May 2 and 3, where a rate hike is expected.
Price Analysis
The cryptocurrency market witnessed sharp volatility on April 26 on rumors that large sums of Bitcoin (BTC) were on the move from the wallets linked to the defunct cryptocurrency exchange Mt. Gox and the United States government. A minor positive is that Bitcoin and select altcoins held their respective support levels.
Bitcoin Activity
After Bitcoin’s sharp rally in 2023, some traders seem to be planning to book profits. Coinglass reported that the Bitcoin balance held at Binance soared by 50,000 Bitcoin in the past 30 days. While this could add to short-term pressure, bulls can take solace because the increase is not identical across exchanges. Coinglass said that the aggregate increase of Bitcoin balance across exchanges was 14,000 Bitcoin.
Upcoming Events
The next major event for the market is likely to be the U.S. Federal Reserve’s meeting on May 2 and 3. The FedWatch Tool projects a 90% probability of a 25 basis point rate hike at the meeting. Most analysts expect this to be the final rate hike before a pivot later in 2021 or early 2022 year .
Price Analysis
Bitcoin formed a long-legged doji candlestick pattern on April 26, indicating indecision among buyers and sellers about directionally move ahead.. This uncertainty resolved towards upside with close above 20 day exponential moving average ($28,619) on April 27th.. Bears will try hard pull back price below 20 day EMA while bulls will attempt flip level into support.. If buyers succeed BTC/USDT pair will try challenge overhead resistance zone between $31,000 & $32,400.. On contrary if price turns down slip below 20 day EMA it indicate sentiment turning negative as traders selling rallies which may retest strong support at 50 day simple moving average($26,359).
Conclusion
If bulls manage sustain prices above $31k-$32k range it could start upmove again . However if bears break below $26K then selloff could extend further .