Bitcoin’s intense shake-up
|Market picture
Bitcoin has been experiencing intense ups and downs this week but remains close to $28,000. This dynamic is looks like a quarterly portfolio shakeout, and predicting the next local move is difficult.
At the same time, we note the slight downward slope of local highs and lows. The Q1 successes have created a demand for profit-taking. In the coming days, it is worth keeping an eye on the trading range boundaries.
According to CryptoQuant, the number of BTCs in exchange wallets is rising. Since the end of March, traders have sent coins to exchanges to sell later.
An accelerated decline at $27.5K would raise the prospect of a deeper correction to $25K, where the price could go quickly. A consolidation above $28.5K would indicate that the sideways trend of the last two weeks is over and that the price is ready to move higher.
According to CoinShares, investments in crypto funds increased by a modest $2.5 million last week, following a $160 million increase the week before. Bitcoin investments rose by $9 million, while Ethereum fell by $3 million.
News background
BTC miners reported their best results since May last year. Bitcoin mining companies collectively generated $755 million in revenue in March.
Two law firms are suing Binance for $1 billion for promoting unregistered securities. This is the second lawsuit against the exchange, on top of one from the CFTC last week.
According to Kaiko, Binance’s spot market share has dropped significantly in the past week. The CFTC’s investigation could last for years, so the outflow of funds will continue.
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