Bitcoin's Post-Halving Recovery Rally Stalls amid Rising Automated Selling
Summary:
Bitcoin's recovery rally post-halving faced a slowdown at the April 22 Wall Street open due to significant selling by automated trading algorithms. Despite reaching a weekly high of $66,546, Bitcoin encountered strong resistance. Analysts are keeping an eye on the 10-week simple moving average, a vital support line for the bull market, which was maintained during the recent weekly close. There's speculation that price could drop to liquidate long positions before establishing an upward trend.
Upon the April 22 Wall Street open, Bitcoin's (BTC) recovery rally post-halving came to a halt due to significant selling pressure from automated trading algorithms, resulting in a slowdown in BTC price growth. During this period, BTC reached a weekly high of $66,546 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
The favorable recovery rally seen post last week's low was met with strong resistance, with sellers outnumbering purchasers. Prominent trader Skew highlighted that competition between one individual bidder and multiple algorithmic sellers could lead to a less dynamic session until later.
Previously, Skew observed that liquidity was shifting nearer to the current price in a possible attempt to attract the market. CoinGlass, a tracking resource, indicated a substantial increase in bids ranging from $64,000 to $65,500 on April 22. Ask liquidity also increased, primarily between $66,500 and $67,750.
Analyst Matthew Hyland pointed out that the 10-week simple moving average (SMA), a critical benchmark for Bitcoin's bull market support line, was upheld at the recent weekly close, standing at $65,686. This SMA has provided steady support to the market since October 2023.
Credible Crypto, a leading trader and analyst, theorized that the Bitcoin price movement could revert to lower levels to liquidate long positions before establishing an upward trend. He also noted that Open Interest (OI) was on the rise. He suggests a possibility of prices declining to eliminate long positions before the market experiences a genuine pump.
This report does not provide financial advice or recommendations. Investments and trading can be risky, and it's recommended that individuals perform their own research when making financial decisions.
Published At
4/22/2024 6:57:09 PM
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