Bitcoin Price Forecast: BTC traders get ready for the price increase

BTC traders have been moving money from the cryptocurrency exchanges.
BTC/USD is locked in a tight range with no clear sign of an upcoming breakthrough.

Traders take their coins away from exchanges

According to the statistics provided by TokenAnalyst, the amount of Bitcoin (BTC) on Bitfinex accounts decreased by one-third or 66,000 coins in a month. This decrease reflects Bitcoin's crash in the middle of March that briefly took the price of the first digital asset under $4,000.

Notably, Bitfinex is not the only exchange that saw BTC outflow in recent weeks as traders have been taking their digital assets from the exchange. However, the majority of platforms got away with minor losses, while Poloniex managed to increase its BTC holdings.

This trend may signal that BTC users expect a price increase ahead of halving and take their assets away from the exchanges for safe long-term storage.

BTC/USD: Technical picture

The fifth daily Doji in a row is a clear sign that the breakthrough is just around the corner. BTC/USD has been trading in s tight range limited by $7,000 on the upside and $6,700 on the downside since April 11, while several attempts to break in either direction yielded to result. At the time of writing, BTC/USD is changing hands at $6,850, mostly unchanged since this time on Tuesday.

BTC bulls will have to take the price above the strong resistance area $7,00-$7,150, to improve the technical picture and bring the recovery back on track. This area is packed with strong technical levels, including April 12 high, daily SMA50, 50% Fibo retracement for the downside move from February 2020 high. Once it is out of the way, $7,500 will come into focus. This barrier stopped the recovery at the beginning of April.

On the downside, the strong support is created by $6,600-$6,500 area, which includes April 13 low. It is also reinforced by 38.2% Fibo retracement for the above-said move. If it is cleared, the sell-off may be extended towards $6,000. The critical support comes at $5,650, which is a confluence of weekly SMA200 and 23.6% Fibo retracement.

BTC/USD daily chart

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram