Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion
- BTC fluctuated in April 2023 but posted 4.5% gains.
- BTC's supply tightens as more than 54% remained unmoved for 2+ years.
Despite fluctuations in April, Bitcoin [BTC] ended the month in green. Notably, the king coin made a new monthly high of $31k but retraced sharply amidst macro headwinds. It reversed some of the losses at press time, posting over 4.5% at the end of April.
Source: Coin360
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In addition, whales have quietly amassed over 64k BTCs as the coin dipped in the second half of April. Can these whale actions inflict a new monthly high in May despite the upcoming FOMC meeting?
BTC wavered below $30k
Source: BTC/USDT on TradingView
BTC's press time price level mirrors May 2022 lows. In early April, BTC broke above its $26.8k – $28.6k range but hit an ascending trendline resistance (continuous white line). The trendline resistance prompted profit-taking after BTC surged above $30k, setting it to dip and waver slightly afterwards.
But bulls have firmly defended $26.8k support, reinforcing the bullish sentiment. As such, bulls could attempt to rally to the ascending trendline resistance near $32.4k. Above the aforementioned resistance, the other obstacles lay at $34.3k and $37.5k.
On the downside, bulls could try to prevent further drop at $25.25k if the $26.8k support cracks. The March lows of $20k could check any extreme retracement beyond $25k.
Meanwhile, the RSI retreated from lower ranges – confirming increased buying pressure. However, the volume and OBV dipped slightly and stagnated after mid-March, indicating limited demand in the same period.
BTC supply continues to tighten
Source: Glassnode
Read Bitcoin's [BTC] Price Prediction 2023-24
According to Glassnode, 54% of the BTC supply remained unmoved for over two years at press time. It means BTC's supply is tightening and also captures the long-term bullish prospects of the asset despite recent price fluctuations.
On the futures market front, the open interest (OI) rate rose from $11.548 billion on 1 April to $11.755 billion on 30 April, at press time. It corroborates a mild bullish momentum in April despite the price wavering in the same period. Will the OI, whale action and tightening supply prop up BTC's value in May?
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