The markets have been slow this week, causing Bitcoin to mostly move sideways. This should have been a fruitful week for leverage traders since a sideways market presents lucrative opportunities bolstered by high leverage to make profits.
However, can we make the same claim for next week? Let’s dive into BTC analysis.
Previous Bitcoin Analysis
After a sharp fall in Bitcoin price last week, the asset began to trend below the 50-day EMA – a bearish signal. We expected Bitcoin to drop down further and head for the 200-day EMA which would act as a major support. Hopefully, BTC would bounce off of this support indicator and head for new highs.
Bitcoin Price Next Week
Bitcoin found support at $26,500 and refused to drop to $24,000. This is a good thing as it shows the bulls still have power. Despite this unprecedented support, Bitcoin still did not break above the 50-day EMA. In fact, this indicator is now acting as an overhead resistance for Bitcoin.
Between the 50-day EMA indicator and the $26,500 support, BTC has a tiny space to move. You could say Bitcoin is recoiling and we don’t know in which direction it will spring.
Tether: A Bullish Narrative for BTC
Bitcoin might spring upwards given that now Tether, the company behind USDT has announced they will be investing 15% of their profits in Bitcoin monthly starting May 2023.
While Tether has been in the limelight for not having its assets 100% fully backed, they have continued to assert that they are actually 100% backed with $2.5B in excess of reserves. According to an official Tether blog post, the company held about $1.5B worth of Bitcoin in its reserves. The company is also invested in Gold.
It is sufficient to assume that such a company with excess reserves is highly profitable. 15% of $2.5B is $375 million. All that money going into Bitcoin would raise it a few thousand dollars.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.