According to Gareth Soloway, he closely monitors Bitcoin price movements and analyses charts to discover patterns and trends. Bitcoin has been battling to break over the psychological level of $30,500, which was also the low point in 2021 before the run-up to $69,000. This level is a crucial technical and psychological barrier for Bitcoin, and its inability to break past it has resulted in significant pullbacks.
The recent banking crisis is increasing market worries. Although Bitcoin experienced a brief increase in response, it quickly lost those gains, which is concerning. However, market sentiment appears to be positive today, with the stock market and NASDAQ on the rise and strong tech earnings. As a result, Bitcoin is also increasing in value. It's crucial to remember that the price of Bitcoin can be influenced by a multitude of factors, like risk-on mood and banking crises, and as a technical trader, I keep a close eye on all of them.
As the month of April comes to a close, the price of Bitcoin has been relatively stable, making it impossible to forecast its short-term direction. As the weekly and monthly candle closes approached on April 30th, Bitcoin's volatility narrowed.
There has recently been a large selling binge in the market, with major participants offloading their investments. The seven successive down candles demonstrated this. As a technician, I see this as a time count and a buying opportunity, albeit timing the market precisely is difficult.
Bitcoin was pummelling for several days as it was hovering around $30,500, making a doji candle, which is considered a resistance reversal indicator. This signified the beginning of the descent from the peak. However, if Bitcoin is able to break through this level, the resistance trend line weakens with each attempt, much like repeatedly hitting a door. While the chances of Bitcoin breaking higher are still slim, they are improving with each attempt.
Soloway, as a technical analyst, notices that Bitcoin has been trading sideways with an unnerving calm, despite the possibility for volatility owing to lower weekend liquidity. The market is hoping for no unpleasant surprises when the candle closes. Looking at the three-day chart, one can conclude that a breakout might result in an upward objective of up to 32,500, while the loss of a major trend line below the current price would result in a negative trend.
Bitcoin must remain above the psychological mark of 30,500 for five to seven trading days, including weekends, to confirm the bullish trend. If it can do so, we may have reached a low for Bitcoin, but this does not imply a bullish indication. The trader's thinking should shift from substantially shorting to heavily purchasing on pullbacks. The objective is to sell the pops and buy the declines.
Looking at the charts, we can see that the market has been aggressively selling off, and there is significant resistance at the 30,500 level. There are also many traders who bought Bitcoin in the past and lost money and are now selling their Bitcoins. We have yet to see an altcoin season, and many altcoins, such as Matic, Solana, Avalanche, Cardano, and Polka Dot, have not had runs where they reached recent highs from earlier this year or late last year when compared to Bitcoin and Ethereum.
The US dollar remains the world's reserve currency, but it may not be in ten years. More countries are trading in digital currency, such as China trading in digital Yuan with Argentina, and more currencies are being traded among trading partners without the use of the US dollar. However, it is not a trade-in in which short-term traders are interested. The market is not crumbling overnight, and this is just the beginning.
Looking at the support that has formed above the important exponential moving averages (EMAs) in prior years, it is difficult to conceive being bearish on BTC, especially since it has been creating support above the EMA ribbon bands for several weeks. As a result, bears should be lucky.
Countries may tie their currency to Bitcoin or another cryptocurrency when Bitcoin matures and becomes less volatile. However, major countries are unlikely to return to the gold standard because government officials do not want to lose control over monetary policy.
Source:
Money Talks, 1 May 2023, "Bitcoin Is About To Do The Unthinkable | Gareth Soloway Prediction",
