Do you have $40K in the bank? It has already reached the tipping point for Bitcoin, according to new research

According to Decentrader's Filbfilb, the yearly pivot for Bitcoin price action is more important than support and resistance.

A new report says that Bitcoin (BTC) is at a "pivotal." This means that macro forces that could have an impact on it for "months to come" are at play now.

When Decentrader released its latest market report on April 8, it said that the price of bitcoin should be the focus of more attention.

All eyes are on the annual shift.

This month, Bitcoin gave $43,000 support two times, and now the market isn't sure what to think about it after it turned around near $50,000.

The move below $46,200, the opening price for 2022, was hard to swallow because it had been the BTC price ceiling since January 1.

It's becoming more common to see lower levels being looked at, and people are calling for the price to go even lower. For Decentrader, the zone for bulls to hold is already here, though. During the year, prices move in and out of the yearly pivot, which is a price level that in 2022 is around $43,500. This is right where the spot price was on Friday.

BitCoin was rejected off of the Yearly Pivot, which hasn't been broken in either of the last two 4-year cycle bear markets, an analyst said.

BTC/USD could be in a "bear market" phase right now. If this is true, a close above the pivot, especially on higher timeframes, would not only be bullish, but it would be a very rare thing to happen.

Filbfilb: "A break above the annual pivot would be a break from the 4-year cycle norm, which could mean that Bitcoin is on its way to significantly higher prices." For now, the weekly level needs to be supported by the bulls, so that Bitcoin doesn't drop back into consolidation.

“This, although highly probable, was a disappointment for the bulls which had an injection of hopium, having broken the major weekly support/resistance level of circa $43k.”

BTC/USD chart with yearly pivots marked (screenshot). Source: Decentrader
BTC/USD chart with yearly pivots marked (screenshot). Source: Decentrader

When liquidity builds up, it looks like a stack

As inflation bites and efforts to fight it get more intense, the next few months look to be tied to central bank policy.

A lot of people think that the US Federal Reserve is going to cut back on its balance sheet, which is going to hurt stocks and other risky assets, which could make Bitcoin less appealing.

Filbfilb agreed with these powerful headwinds. He said that the Fed's actions could have an impact on BTC prices for months to come, which is why he agreed with them.

If there are a lot of people trying to get cash, then how low Bitcoin could go could depend on that. Derivatives funding rates show that people still think that the market is going to go up, even though the spot price has gone down. This increases the chances of a liquidation cascade going down.

Coinglass, an on-chain monitoring service, says that this week has already seen the largest long liquidation episode since January.

Crypto liquidations chart. Source: Coinglass
Crypto liquidations chart. Source: Coinglass

Filbfilb said that because there is a lot of money both above and below the spot price, there is still a chance for a squeeze in either direction. The possible upside target is still above $50,000.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

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