- The Bitcoin price flipped the 20-day and 50-day SMAs from support to resistance.
- BTC has a formidable support wall at the $53,000 zone.
Since March 26, the Bitcoin price has jumped from $51,275 to $63,6000 on April 13. During this upward surge, BTC managed to flip the 20-day SMA from resistance to support. However, following this positive surge, BTC managed to drop by nearly $10,000.
The Bitcoin Price Shows Increasing Bearish Momentum
Since April 13, the Bitcoin price dropped by $63,600 to $54,500. During this dip, BTC flashed multiple sell signals:
- The MACD shows increasing bearish market momentum.
- The 20-day and 50-day SMAs have flipped from support to resistance.
- The parabolic SAR shows that market sentiment has reversed from positive to negative.
Image: BTC/USD daily
The nearest support wall for Bitcoin price lies at $53,000. Previously, at this level, nearly 600,000 addresses had purchased over 335,000 BTC tokens.
Santiment Shows Different Bitcoin On-Chain Analytics
Firstly, Santiment showed that Bitcoin price chatter has been up high due to negative reaction from the dump.
“The (over)reaction to the dump was seen almost immediately across Bitcoin’s charts and elsewhere. The amount of BTC-related mentions on crypto social media surged by +107% compared to the day prior, reaching its highest margin since the February price top.”
In fact, as per the ML algorithms, the average sentiment towards Bitcoin flipped from overwhelmingly bullish on Friday to bearish after the drop, signaling a market-wide ‘wall of worry’ about Bitcoin’s future PA.
The amount of daily unique addresses interacting with (i.e. sending or receiving) BTC dropped to 826,000, marking the lowest daily activity since November 7th:
Bitcoin Price Is Expected To Reach These Levels
Bitcoin price needs to flip the 50-day SMA from resistance to support to continue its upward surge. If BTC flips the 50-day SMA, the buyers will attempt to conquer the 20-day SMA again ($59,000).