Bitcoin Price Enters Consolidation Phase, Positive Outcome Likely

Bitcoin (BTC) Prices Likely To Consolidate Before Next Move
  • The bullish divergence provides further support for the reversal idea.
  • The ADX slope didn’t react strongly enough to this week’s colossal sell-off.

According to a well-known quant analyst, monitoring the activity of ancient Bitcoin (BTC) whales since the investment group might lead to a shortage of supply for the cryptocurrency’s sellers. In a tweet, CryptoQuant CEO Ki Young Ju said that old Bitcoin whales, or companies that have maintained massive BTC stacks for more than seven years, are still in slumber.

Ju claims that on March 28, when Bitcoin rebounded to roughly $47,000, primitive BTC whales last made movements. There was a dramatic slump in crypto assets, falling roughly 60 percent of their value in a little over three months.

Despite this week’s reversal of the recent rebound surge, sellers still have the reins of power. A bearish collapse was also hinted at, as coin price retested $18700 as immediate support. Bitcoin has been on a losing trend since June 26, when the price fell from $21784. When the coin hit $18729, it lost 13.36 percent of its market value.

BTC/USD: Source: TradingView

Buyers Continue to Defend

However, coin buyers were able to close the daily candle above the $18900 support during this decline. This support has also shown numerous lower price rejection candles on the BTC chart over the previous four days, suggesting buyers are continuing to defend it. Contrary to this, a collapse of support around $17600 would imply the continuation of a downward spiral, with support at $16500 the closest objective.

This indicates that traders have gone too far in their selling, as seen by the RSI slope dropping below the 14-SMA and the neckline of the oversold territory. The bullish divergence provides further support for the reversal idea since the previous test of this support. The ADX slope didn’t react strongly enough to this week’s colossal sell-off, suggesting a lack of negative momentum.

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