- The Bitcoin price shows increasing bearish market momentum.
- BTC has a formidable support wall at the $54,000 zone.
Between April 14 and April 19 the Bitcoin price dropped from $63,600 to $54,500. During this dip, BTC managed to flip both the 20-day and 50-day SMAs from support to resistance. Before that, the Bitcoin price had jumped from $51,275 to $63,6000 between March 26 and April 13. Let’s take a closer look with technical analysis.
The Bitcoin Price Hovers Horizontally Below 50-day SMA
Since April 19, the Bitcoin price has trended horizontally around $54,850 and has hugged the downside of the 50-day SMA. The MACD shows increasing bearish market momentum. Plus, 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 $54,000. Previously, at this level, nearly 437,000 addresses had purchased over 338,000 BTC tokens.
Bitcoin Accumulation Going Strong
It looks like the Bitcoin wallets containing 100-10k BTC have started accumulating following the Sunday dip.
Blackrock CEO Believes Bitcoin And Crypto Will Be A “Great Asset Class”
In a recent interview, BlackRock CEO Larry Fink said that cryptocurrencies could "become a great asset class."
It may become a great asset. I don't believe we should think about #crypto as a substitute of currency.
In January, Bloomberg reported that Blackrock was adding Bitcoin futures as eligible investments in two of its funds. That was the first time the firm had offered crypto exposure to its clients. However, despite his optimism, Fink remained skeptical of whether cryptocurrencies could replace fiat.
I don’t believe it’s a substitute for currencies. I think we’re going to have cryptocurrencies of dollars, cryptocurrencies of other currencies. But I don’t believe we should think about crypto as a substitute of currency. But I’m fascinated by it as an asset class.
Interestingly, Finks said that there has been very little demand and crypto interest from Blackrock’s institutional clients. This marks a stark contrast to Goldman Sachs’ survey, where more than 40% of the bank’s clients had crypto exposure. The investment bank, in fact, restarted its crypto trading desk because of the institutional money flooding into the crypto space. Other money managers such as Morgan Stanley and NYDIG reported similar trends earlier last month.
There are components in the financial markets about crypto that are real, that [are] growing. But if you’re asking me specifically about long-term investing from sovereign wealth funds, from pension funds, from retirement services, from big family offices, the conversation about crypto is a very minor conversation compared to so many other conversations.
Bitcoin Price Is Expected To Reach These Levels
Bitcoin price needs to flip the 50-day SMA from resistance to support to reach the 20-day SMA ($58,700) level.