If you’ve seen the current Bitcoin price action (PA), it really looks weird and indecisive, especially if we zoom in in the 4H chart – there’s no decision and just a constant battle between resistance and support.
On April 29th, the price action turned even more strange by dropping even nearer to the low $53,000 – killing several ascending trades such as BNB (from $560-570 to over $610 with a projection of $700-715), as well as others such as SXP (which finally broke the $4.00 mark), AXS, etc. Even slowing down bullish trends such as MATIC’s.
The question is, what is going on? We are going to analyze the current scenario to understand why Bitcoin is behaving like this, and hence, let you see if it’s a good idea to buy bitcoin with paybis right now or not.
Rumors Have Affected The Price
There were ongoing rumors that FB had bought BTC and that they would disclose it during April. Unfortunately, due to the nature of the rumors, they brought instability to the price, something that we can still see and that has taken the BTC price to below the $53,000 level.
Finally, it proved to be false since Facebook didn’t disclose that they bought Bitcoin. This has brought chaos to the price action, which has affected a wide myriad of altcoins. For example, AXS was ascending and breaking through resistances, but due to the BTC rumors, it has dipped to below the $10 mark, after breaking it and touching the $11 mark.
The same goes for the BNB token by Binance. It had an ascending trend that many traders thought would easily break through the $600 level to finally get into the $700 mark – but due to the recent PA of Bitcoin, we have seen it dip back into the $500 zone and get back into the reload region between $530-$570, with no clear signs of going up again.
ETF Options Expiry
ETF options are due for expiration at the end of April, and once again, this usually affects the price. As we have seen in the last months, this timeframe almost always leads to a dump in the price, but due to the rumors, the effect has magnified even more.
The combination of these forces has brought more uncertainty to the BTC price, which is scaring retail investors and even taking them to sell at a loss – because many bought at $60K levels due to the fear of missing out (FOMO).
Therefore, we can expect BTC to finally make a decision on April 30th or within the first days of May. According to professional traders, we could experience a pullback to $51,000, which would open opportunities to invest in promising altcoins such as ICX and DIA that have great fundamentals and are still under-appreciated.
The Whale Games
Whales are always one step ahead of the majority of investors and traders, especially the newbies… and even more if we talk about new traders that are trying futures and derivatives for the first time.
During the last week of April, we saw BTC recover but then the trend again turned bearish for a while. However, we saw a very strange wick that took the BTC price above the $56,000 mark, only for it to crash back to the $53,000-$54,000 a few moments later.
This was a masterful example of what whales do to liquidate shorts, and hence, take more money away from new traders that overuse the leverage and don’t bother to set up stop-loss orders.
To understand it correctly, whenever most new traders think that the BTC price will go down, there’s always a chance that the whales will make the price spike in order to liquidate the short before the price can actually go down. Even more, they can use this as a way to lure traders to long BTC, only to crush them when the wick comes down again.
What To Do?
Our stance is to simply wait. If you are trading, we recommend limiting your exposure to the market as of now. A healthy balance of 70-80% in stable coins and only 20-30% in altcoins or BTC + ETH will protect you against likely pullbacks in the BTC price, which as we know, will lead to price pullbacks in most coins and tokens.
These are the reasons that have led the BTC price to fluctuate heavily during April. Is May going to be different? Only time will tell, and we are going to know about it very soon.
What do you think about the current BTC price action? What other factors might be affecting it in your opinion? Let us know in the comments because we want to hear what you have to say.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.