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Bitcoin price wipes out three weeks of liquidity; is $36,000 the final low?

  • Bitcoin price has wiped out all intraday traders' safety stops for April.
  • BTC price has fallen back into a consolidative trend.
  • Invalidation of the uptrend scenario is a close below $34,500 on the daily chart.

Bitcoin price has fallen to its lowest point all month as the price has finally tested the anticipated $36,500 price level. The current price could be the final low for April.

Bitcoin price Wyckoff Spring

Bitcoin price appears to print the anticipated Wyckoff spring within the $37,000-$40,000 range. Intraday traders saw another fake-out on Thursday, which raised the BTC price back into the $40,000 zone. The bullish accomplishment was short-lived as the BTC price has since collapsed to $36,000, the lowest price point since February. 

Bitcoin price could be printing the final low for the rest of the month. Traders should highly consider a dollar-cost approach at the current BTC price levels as the Bitcoin price could be printing a Wycoff spring. If this is indeed a Bitcoin Wycoff accumulation pattern, then the current low could get viciously retraced in a short period of time. The volume profile also indicates an extreme capitulation underway on the 2-hour chart.

Tm/ADA/5/5/22

BTC/USDT 2-Hour Chart

Invalidation of the uptrend scenario is a close below $34,500 on the daily chart. If this event were to occur, the swing lows below $31,000 would be the next probable target resulting in a 15% decrease from the current BTC price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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