Bitcoin Technical Analysis: Bearish Engulfing Pattern Crashes BTC below $57,000
Daily Bitcoin BTC Price Analysis
- Bitcoin price volatility is decreasing as per the Bollinger Band.
- The MACD shows sustained bullish market momentum.
Between April 26 and May 8, the Bitcoin’s price jumped from $49,000 to $58,800 flipping both the 20-day and 50-day SMAs from resistance to support. Following ETH’s up surge, it seemed like BTC would follow suit. However, the premier crypto fell on the verge of re-entering the $60,000 zone.
The Bitcoin Price Retreats On The Verge Of Hitting $69,000
So far today, the Bitcoin price dropped from $59,000 to $56,650 – losing almost $2,500 in its overall valuation. However, there are two factors that shows us that the overall market sentiment is positive – The parabolic SAR positive, while MACD shows sustained bullish market momentum.
Image: BTC/USD daily
Bitcoin price failed after losing momentum at the $59,000 resistance barrier. As per the IOMAP, previously - at this level - >1 million addresses had purchased almost 447,000 BTC tokens. As of now, the 50-day SMA is holding firm to prevent further downtrend.
Bitcoin Millionaires On The Rise
"Of the 16,104 #Bitcoin addresses holding between 100 to 10,000 $BTC currently, they own 9.1M $BTC ($531.3B in USD). After declining holdings from April 10 to May 4, this group is showing signs of accumulating again with 20k added $BTC the past 2 days."
In fact, the rich Bitcoiners are just getting richer
"There are currently 86 #Bitcoin addresses that hold at least 10,000 $BTC. The past month, these whale wallets have accumulated ~120,000 more $BTC, about 0.67% of the total supply, valued at $6.9B. This is the most sustained accumulation since Jul, 2019."
However, sat-stakers (aka people holding < 1 BTC) are getting into the ecosystem. These are probably newbie investors who are playing around with BTC and trying to understand how it works.
"#Bitcoin accumulation by 'sat stackers' has continued slow, steady and uninterrupted for many years. Addresses holding less than 1BTC now own 5.25% of the circulating $BTC supply. So far we've not seen a FOMO impulse like 2017 blow-off top."
Bitcoin Price Is Expected To Reach These Levels
If Bitcoin price crashes below the 50-day SMA, a further downtrend will take BTC to the 20-day SMA. BTC holders will hope that these two lines hold strong to prevent a catastrophic crash.