bitcoin bulls may soon be back in business. According to Willy Woo, on-chain analyst, market data twitter.com/woonomic/status/1784928972197024212″ target=”_blank” rel=”nofollow”>sample that the urgent “market selling” responsible for forcing the currency from all-time highs is now falling. This fact can prop up prices, preventing new massive sales.
bitcoin Selling Pressure Declining
This preview is due to falling data from Cumulative Volume Delta (CVD), an on-chain indicator that can also track market sentiment. Specifically, it tracks the buying and selling aggression of market participants. Now that CVD is falling, Woo says more btc holders are likely willing to weather the storm. His decision can directly support prices.
Woo adds that btc must reject selling pressure and end the current short-term weakness as things stand. As the on-chain data shows, btc should remain above $59,600. The CVD lie has historically separated bullish and bearish zones.
Based in This, btc should remain above the round number of $60,000 for the uptrend to sustain. If not, and the bears take control, pushing prices down below the CVD level could signal the beginning of a new bearish regime.
So far, btc is under immense selling pressure, trimming about 15% from its all-time highs. The coin has support around the $60,000 and $61,000 zone, moving within a range. Resistance is at an all-time high around $74,000 on the upper end.
Based on this preview, any loss below $60,000, as Woo points out, would likely cause btc to drop. The coin could fall to $53,000 in the short term, burning the stop loss and fueling the sell-off.
Will Hong Kong spot ETF launch boost prices?
Whether btc bulls return depends mainly on institutional participation in the coming days. Following the approval of spot bitcoin exchange-traded funds (ETFs) in January, prices soared, surpassing previous all-time highs.
Institutional participation has been vital. However, inflows have slowed, especially in the last two weeks of April. Analysts are now looking at the launch of spot bitcoin ETFs in Hong Kong on April 30.
In a recent interviewZhu Haokang, head of digital asset management in Hong Kong, is optimistic. Haokang expects trading volume to eclipse that seen in the United States. The executive says the product is unique and allows for a physical subscription that is more attractive to btc miners. Furthermore, it is global and attracts the interest of investors from Singapore and the Middle East.
Featured image of DALLE, TradingView chart
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