Bitcoin Price Prediction: BTC Attempts To Break Down $58,500 Resistance Amidst Decreasing Volatility
Daily Bitcoin BTC Technical Analysis
- Bitcoin price volatility is decreasing as per the Bollinger Band.
- The MACD shows sustained bullish market momentum.
Between April 26 and May 1, the Bitcoin price jumped from $49,000 to $57,800 flipping both the 20-day and 50-day SMAs from resistance to support. After a brief drop to the $53,650 support line, the buyers took back control for two days in a row.
The Bitcoin Price Flirts With The $58,500 Barrier
Over the last two days, the Bitcoin price jumped from $53,150 to $57,700 – gaining almost $4,550 in its overall valuation. During this surge, BTC managed to flip the 20-day and 50-day SMAs from resistance to support. The MACD shows sustained bullish momentum which tells us that a further growth could be in the cards. However, the Bollinger Band has started narrowing, which tells us that price volatility is going down, so further uptrend could be a chore.
Image: BTC/USD daily
Bitcoin price faces a massive resistance at $58,500. As per the IOMAP, previously - at this level - >900 000 addresses had purchased almost 375,000 BTC tokens.
On-Chain Analytics In Bitcoin’s Favor
It looks like Bitcoin price is ready to do another leg up. Ki-Young Ju, the head of CryptoQuant, shared this chart and tweet.
"$BTC is ready to get another leg up. A significant amount of Bitcoins has flowed out across all exchanges, weakening selling pressure."
Glassnode founders Yann & Jan shared this chart to statistically prove what everybody was already thinking – the n00bs panic sold.
"Haven't seen LT holder position change flip green since October last year. Looks like new market entrants did a lot of that recent #Bitcoin panic selling."
Glassnode Co-Founder Gives More Insights
Glassnode co-founder and CTO, Rafael Schultze-Kraft, shared the following charts and tweets about Bitcoin price’s bullish sentiment.
"1/ Unprecedented capital inflows into #Bitcoin as measured by realized capitalization. Over the past 6 months, realized cap has surged a whopping $250 billion – an increase of ~200%."
"In the past weeks, realized cap has been increasing steeper relative to market cap, leading to a decline of MVRV – despite a "flat" #Bitcoin price. MVRV-Z at this price level in February: 7.6 MVRV-Z today: 4.4 MVRV-Z at previous cycle tops: 10+"
"For comparison: the entire #Bitcoin market cap was only $250 billion half a year ago – the same amount Rcap has increased since then. Realized cap is now as high as market cap 5 months ago, in mid December ($370B)."
Latin America’s Mercado Libre Adds $7.8M BTC To Its Treasury
Latin America's largest e-commerce platform Mercado Libre recently announced to the US Securities and Exchange Commission (SEC) that it acquired $7.8 million in Bitcoin in the first quarter of 2021. According to the report filed, the firm said:
As part of our treasury strategy this quarter we purchased $7.8 million in Bitcoin, a digital asset that we are disclosing within our indefinite-lived intangible assets.
The acquisition makes Mercado Libre the first large Latin American company to acquire Bitcoin for its treasury. It has now joined a club of companies, including MicroStrategy and Tesla, which have revealed holding BTC within their assets.
A few days back, Japanese gaming platform Nexon announced it had purchased 1,717 BTC for its balance sheet at roughly $100 million. Mercado Libre's announcement makes it the 36th publicly listed company to hold Bitcoin according to Bitcoin Treasuries. Mercado Libre trades on Nasdaq as MELI.
Earlier, Marcos Galperín, the founder of Mercado Libre, has announced that he has owned Bitcoin in his portfolio since 2013. He has also expressed bullish opinions about the cryptocurrency ecosystem in Latin America, stating that Bitcoin is a better store of value than gold.
Bitcoin Price Is Expected To Reach These Levels
The Bitcoin price will need to cross over the $58,500 resistance barrier to reach the $60,000 psychological level. However, this could be quite a task due to its decreasing volatility.