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Bitcoin, the largest cryptocurrency by market cap, seems to be at a decisive juncture in its price action, with a key indicator issuing a warning that could imply a potential downturn in its value. However, there is a catch that might be worth considering.
Ali, a crypto analyst, indicated in a recent tweet that the popular TD Sequential indicator has flashed a sell signal on Bitcoin's 12-hour price chart.
Supporting this outlook is the fact that Bitcoin is currently facing resistance at the mid-level of a parallel channel. If Bitcoin faces rejection at this key price level, it might trigger a short-term price drop.
Ali adds a note of warning for Bitcoin buyers to exercise caution, given this indicator's track record. The most important thing to watch is if BTC drops below the $65,500 support level.
BTC had fallen beneath this highlighted level at the time of writing, down 2.67% in the last 24 hours to $65,168. Mid-April has historically been a period of price weakness for BTC.
According to the most recent analysis from Greekslive, implied BTC volatility declined rapidly after the BTC halving, falling from 75% to 65% to mark a new low since March.
The crypto community watches with rapt attention to deduce BTC's next price move as it navigates its post-halving trajectory.
Here's the catch
Despite the warning about BTC's near-term price, investors have an underlying sentiment of optimism.
According to on-chain analytics firm Santiment, Bitcoin's key whale tier holding between 1,000 and 10,000 BTC, has accumulated 266,000 more BTC since the start of 2024. This translates to an accumulation of 1.24% of the entire supply. There is also a high degree of FOMO.
Likewise, other BTC metrics are showing an uptick. Bitcoin analyst Willy Woo indicated that Bitcoin miner revenues have seen a huge jump to record highs after the halving. Likewise, Bitcoin's supply distribution continues to improve over time, with a sharp jump in the number of "whales" on-chain recorded over the last two months.
Yuri Molchan
Dan Burgin
