Bitcoin (BTC) retested $38,000 overnight as the weekend began with uncertainty among investors. Doomsday scenarios for Bitcoin price action remain in focus as some whales and small investors choose to play big on BTC at current prices. Analysts, drawing attention to March 2021 levels, say that the 3-day chart points to the repetition of the importance of Covid.
3-day Bitcoin chart could be a “lead” for the week
Data from TradingView shows BTC/USD surrounding $39,000 after several attempts to break the $38,000 support. Bitcoin also saw a brief bounce above $40,000 on Friday thanks to geopolitical developments, but this only lasted a few minutes before the previous status quo returned.
3-day BTC candles dance at 200 MA
Material Indicators on Twitter warned their followers that day: “3-Day BTC candles are out of the Covid crash flirting with the 200 MA for the first time since” and shared the details with the following tweet:
If this is a precursor to what the weekly candle will do, make sure you have enough cash to take advantage of the buying opportunity below. This leap can change your life.
200 weeks of action currently priced at just over $20,000 and still climbing The average has acted as a historic bottom zone throughout Bitcoin’s lifetime and has never been breached.
Earlier, popular analyst Pentoshi has made it clear that he believes a Wall Street Crash-style event could take over the markets this year.
BTC bets big and small keep flowing
On the plus side, whale purchases and smaller investor wallet growth have provided long-term hunters reasons to be cheery. As quoted by Kriptokoin.com, 30,000 BTC left Coinbase on Friday, while FX reserves mimicked the declines seen in July and September last year.
Moskovski Capital CEO Lex Moskovski, on-chain analytics firm Citing data from Glassnode, he said:
10-100 BTC wallets are piling up like crazy, their supply is becoming parabolic. These guys have correctly sold the meat of the $10,000 to $50,000 Bitcoin move.
An accompanying chart shows that the proportion of BTC supply currently held by organizations – one or more wallets assumed to be owned by the same investor – is now at a one-year high.
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