Bitcoin took a big step and opened with some decent gains this week but was turned down just over $ 40,000. Around this resistance, the bears started pulling the price down, but the bulls are still pushing as BTC was trading at 39.73K at press time, highlighting daily gains of 6.74%.
This week got off to an exciting start as the price of Bitcoin skyrocketed like a roller coaster ride fueled by speculation about Amazon’s acceptance and rejection of BTC. Nonetheless, Bitcoin maintained its uptrend amid the Tether FUD, which was later exposed, and rejection from leveraged traders.
An explosive step ahead of you?
A previous article indicated that Bitcoin’s Relative Strength Index, breaking away from its ongoing downtrend for the first time this year with a massive uptrend, was a major sign of the asset’s uptrend. Another strong indicator of “explosive upward momentum” was the Bollinger Bands.
Trader and analyst Scott Melker in a current video stressed that the Bollinger Bands were tight around December 2020, then by April 21 bands had narrowed again. Interestingly, the bands were really tight all month; When this previously happened in December (2020) and April (2021) it resulted in a volatile explosive move that the BTC price is showing. Melker continued to describe this tightening and the recent opening of the bands as “very bullish”.
But what about the bearish signs?
External news has always been a major driver of Bitcoin’s price and sentiment. Most of the time, when the price goes up, the social sentiment generally stays high too. This time around, however, BTC’s Twitter-weighted sentiment quickly turned positive amid Amazon rumors, but plunged to its lowest level in 6 months when Amazon denied the rumors. The same case was seen for Bitcoin’s overall weighted sentiment, which was also down.
However, one report indicated that the projected funding rate is currently neutral or negative, which means most people are in short supply. Does this mean that the recent Bitcoin price action was not enough to cause a reversal?
It is fair to say that in order to see a real reversal we will need a continuation of breaking the $ 40,000 resistance and further testing of the $ 42,000 mark to decipher a better long-term picture for the coin. While Twitter sentiment and funding rates show that the majority of gamers are still pessimistic about Bitcoin, upward price movements could have a positive impact.