The past week has been the toughest since November’s FTX crash, with Bitcoin falling over 10%.
According to the Cryptocurrency Screener Cryptovizorwhich determines the price of BTC/USD based on the results of trading on spot exchanges, the lower point of the fall corresponded to $27,045, while the week closed with a bearish engulfing candlestick pattern.
The collapse of the bitcoin rate and the bearish pattern did not embarrass the head of the Eight trading firm, Michael van de Poppe. It follows the following scenario:
$26,600, then $28,800, and then $25,000. Although at $28,800, the market may be stronger than expected. The critical level is now $27,800.
Trader Crypto Tony also thinksthat the local bottom will be found at $26,600, where he is going to close his short position.
Similarly, the Material Indicators resource, which regularly publishes data on the location of orders on the Binance exchange, indicated for a significant accumulation of buy orders in the $26,700 area.
Another trader – Ash WSB, – published a diagram of the current levels on the Bitcoin chart, which is fully consistent with the forecasts above, and added:
The market has already priced in that on May 3 the US Federal Open Market Committee (FOMC) will raise the rate by 0.25%.
But that will be next week, and this week we have yet to see the reaction of Bitcoin to the latest data on the US Personal Consumption Expenditure Index (PCE). This is one of the most important parameters that the Fed takes into account when making a rate decision. Data will be published on Friday, April 28 at 15:30 (MSK).
And a few words about what is happening behind the scenes of the current dump. Moustache analyst uses the QQE indicator (‘Qualitative Quantitative Estimation’ – a variation of RSI) to assess the accumulation of bitcoin “smart money” (smart money). He argues that every time QQE goes above zero, a powerful bull run begins (as happened in 2011, 2015 and 2019). Now such a moment has come. Mustache summarized:
The smart money has finished accumulating bitcoin.
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