3 Key Signs That Bitcoin Is Preparing For a Big Price Move
Bitcoin had a tumultuous and dramatic start to Q2, with its price falling to a five-month low of less than $75,000 in early April. This tragedy occurred during the darkest days (for now) of US President Donald Trump’s intensifying trade war with the rest of the globe.
As his strategy and goals became evident, and he delayed tariffs against all nations except China, BTC began to rebound and gained $20,000 over the next few weeks. Since breaking above $90,000 over a week ago, the asset has remained sluggish in a tight sideways channel ranging from $93,000 to $95,000.
There was a breakdown attempt yesterday, but the lower limit held strong, and BTC is now attempting the upper one. According to several important indices, this consolidation phase may be nearing its end, indicating an impending significant price move.
Squeezing BBs
Popular cryptocurrency expert Ali Martinez highlighted the recent lessened volatility, as evidenced by the squeezed Bollinger Bands. The momentum indicator, which consists of three lines with the Simple Moving Average (SMA) in the middle, has tightened on the 4-hour BTC chart, and Martinez cautioned that “a major price move could be just around the corner.”
Although the BBs are a secondary technical tool and do not provide a clear indicator of the direction of the move, the analyst believes BTC has a good possibility of moving north if it continues above the crucial support of $93,198, which has held its price on a few occasions in the last week.
Furthermore, if BTC breaks above $95,870, it may soar to a new all-time high of roughly $114,230, according to him.
Accumulation Skyrockets
The second and third signals of an impending major BTC move are somewhat similar, but they are worth distinguishing. On the one hand, we have an increasing population of whales. As reported yesterday, these market actors have amassed $4 billion in bitcoin in just two weeks.
On the other hand, the BTC ETFs broke their prior negative run and produced a positive one from April 17 to April 30. Although this trend ended yesterday, it was with a tiny outflow of $56.3 million, significantly less than the billions drawn previously.
Martinez emphasised these significant purchases, noting that the BTC Accumulation Trend Score has approached 1, indicating that larger entities are on a spending frenzy.
Bonus: The amount of bitcoins on exchanges has been steadily falling, hitting a five-year low. While this is another bullish sign for the underlying asset’s future price fluctuations, Swan’s experts highlighted why the market has yet to react.
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