Ethereum reclaims $3,000 while Terra registers 14% growth today.

Bitcoin CryptocurrencyPIXABAY | REPRESENTATIVE IMAGE
Bitcoin and Crypto Market Watch Tuesday, April 19, 2022 - 16:57

After three consecutive weeks of downtrend, Bitcoin (BTC) began this week on a shaky note with intraday prices testing the $38,000 region yesterday. However, BTC received enough support from buyers to reclaim the $40,000-mark once again. Altcoins like Ethereum (ETH), Near Protocol (NEAR), Solana (SOL), and Cardano (ADA) were quick to register gains on BTC’s consolidation above $40,000. ETH went on to regain the crucial $3,000 psychological level. Among the top-20 crypto assets, Terra (LUNA) emerged as the top gainer today with a 14% price surge on account of strong demand for its stablecoin terraUSD.

In this article, we will take a brief look at the price action and on-chain analysis of BTC along with its overall outlook.

Bitcoin under consolidation

Since the start of 2022, BTC has had an uneventful price action compared to the frenzy it created in the beginning of 2021. BTC has been majorly consolidating between the $35,000 and $48,000 region with occasional volatility to the downside. While the recent price actions might seem unimpressive to market participants, a deeper analysis using on-chain data reveals some interesting perspectives. On-chain transactions are basically transactions data available on the blockchain that reflect the general state of the network (public ledger).

The trend of BTC’s circulating supply that hasn’t moved for at least one year indicates that the supply is getting continuously squeezed. Circulating supply is the number of tokens that are publicly available in the market. Below is the graph depicting the percentage of BTC supply that was last active 1+ years ago with more than 63% locked up according to on-chain data analysis firm Glassnode.


source: Glassnode

Similarly, the number of BTC accumulation addresses has been going up rapidly over the last few months. Accumulation addresses are defined as addresses that have at least 2 incoming crypto transfers and have never spent funds. The non-spending nature of BTC investors is again visible in the trend shown below.


source: Glassnode

Long- and short-term outlook for BTC

In the short term, the correlation between US tech stocks and crypto assets continue to play out. BTC is currently trading at $40,800 with a 4% gain in the last 24 hours. If BTC were to attempt a move to the upside, the moving averages at $41,700 and $42,100 will act as the major resistance levels. Breaking which, $44,000 region will be next in line. On the downside, the $38,000-$40,000 region will continue to act as short-term support.

In the long term, as tedious as the current price action may appear, on-chain data analysis often reveals trends that remain hidden to the superficial eye. Despite the inflation-curbing measures or unfavorable regulatory climate that can hamper the growing adoption of a risk-on asset like Bitcoin for the near future, the fundamentals continue to remain healthy. To summarize, Bitcoin is undergoing consolidation from long-term investors with strong conviction.

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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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