Bitcoin (BTC) Weekly Prediction: Assessing the Possible Rally to $46,200

  • Bitcoin price unveils a lucrative downward movement to collect sell-side liquidity before an uptrend towards $46,200.
  • Enthusiasts can expect Bitcoin to steady within $40,100 – $40,5000 before triggering a leg-up towards the yearly open.
  • A daily candlestick closing beneath $34,752 will cancel BTC’s bullish thesis.

Bitcoin (BTC) shows a buying opportunity as the crypto stoops to critical support floors. The downward move appears like a market makers’ ploy to gather sell-side liquidity before catalyzing upward movements.

BTC Price and What Players Can Expect

Bitcoin lost 7% since the $42,988 swing high on 21 April, and the bellwether crypto hovers at $40,540. The downward move displays strength at the support barrier in $40,100 – $40,500, and market players can anticipate a bounce in this region.

The resulting upward move would likely propel Bitcoin to retest $41,152 – Monday highs. Enough bullish strength for a 4hr candle closing beyond the $42,137 weekly open could clear the gates for extended uptrends until BTC retests $44,591.

Though BTC’s near-term picture may appear bearish, the 3-day chart indicates that the latest drop held strong beyond the 200 3-day SMA at $39,946. Traders can await increased accumulation, translating to a swift recovery. Such a move can lead to a run-up towards the $46,198 yearly open after BTC shatters the 50- and 100-day Simple Moving Averages, acting as obstacles.

Enhanced bullishness could see BTC stretching higher to retest the 200-day Simple Moving Average near $47,997. Persistence by bulls could see Bitcoin wicking to retest the psychological level near $50,000. From a near-term standpoint, the 30-day Market Value Realized Value indicators hover at the local bottom around -8. BTC formed a local low before catalyzing an uptrend the past few times such lows appeared. Furthermore, the latest downswing had holders at a loss, further erasing any selling strength.

History repeating itself could see BTC surging to $46,200, matching the technical stance outlook. Moreover, IntoTheBlock’s GIOM shows the closest obstacles towards $44K are feeble. Thus, a swift buying pressure resurgence could mean a smooth upward move for BTC.

The out-of-money individuals that bought approximately 3.4 million Bitcoins at a $47,545 average price will likely threaten the upswings. Surprisingly, the technical standpoint capped BTC’s upside at $47,998 – the 200-day Simple Moving Average.

While BTC seems optimistic, breaching the support at $40,100 – $40,500 may welcome crashes towards $34,752. A 24-hour candlestick closing under this foothold will print a lower low before canceling BTC’s bullishness. That can see Bitcoin nosediving to gather sell-stops beneath the $30,000 mark.