Bitcoin price experienced a rather unexpected drop this week after the ETF approval and trading news was priced in. BTC did touch a high of $49,048 but after that went ahead to drop back to lows of $40,000.
The price of Bitcoin (BTC) is $41,267 today. This represents a -3.5% price decrease in the last 24 hours and a -9.8% price decrease in the past 7 days.
Bitcoin Statistics
- Bitcoin Market Cap Dominance: 47.3%
- Bitcoin Market Cap: $809.952 billion
- Total Supply: 21 million
- Circulating supply: 19.602 million
Bitcoin dominance is down from 48.8% last week, signifying that the majority of investors have sold their BTC holdings and put the money in altcoins. A drop in BTC dominance is a good indicator that altcoins are set to do well. The drop in dominance was accompanied by a drop in the market cap of the asset. However, Bitcoin’s overall trading volume across different exchanges went up by +39.80%.
Falling price coupled with rising volume is usually an indicator of accumulation. Bitcoin price is poised to head upwards in the near future.
Previous Bitcoin Price Analysis
Last week, Bitcoin price remained clean above the consolidation zone where it had spent several weeks prior. All indicators showed the asset was headed for higher highs. However, market makers may have had other plans as the price of BTC came tumbling down back into the range.
While we at Blockzeit anticipated a $53,000 BTC after it touched $49,000, Bitcoin came down and broke through the supply zone of the consolidation zone.
The theory that smart money may be behind this price manipulation sounds plausible especially when Blackrock is seen to have added their Bitcoin holding to a whopping 16,362 BTC in just 4 trading days. Are they trying to get cheap Bitcoin? Maybe.
Smart Money Successfully Sniped Liquidity with the ETF Approval Rally
In the aftermath of the ETF approval and market reaction to the news, it was clear that the whole operation was a liquidity hunt stunt by smart money. The huge pump higher that left the entire market euphoric served to add more liquidity into the pockets of the market makers.
Bitcoin bulls have lost more than $217 million in liquidations as BTC sales by Grayscale continue.
Moving on to the chart, Bitcoin is sitting at its prior demand zone – this is where a majority of buy limit orders are sitting. If market makers choose to play into the traders’ plans, they will trigger the buy limit orders and push the BTC price higher before crashing it back down.
The current demand zone serves as a strong support zone since it has been tested severally before. However, a black swan could easily cause the price to slice through. In that case, BTC can find further support at $37,000, and $35,000. Below this, it’s $31,000 and $24,000.
Author’s Opinion: We may see a $33,000 BTC by halving week and a $55,000 BTC by June 2024
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you should not make investment decisions based solely on what you read here.