- Bitcoin faces a crucial support test as its price dips below $30,000 after recent gains.
- Bitcoin battles for key support as traders weigh in on potential retracement. Read the latest updates on BTC price action and network fundamentals, as well as insights into earnings season and market sentiment
As Bitcoin’s latest weekly close led to the latest gains evaporating, the largest cryptocurrency starts a new week under $30,000 as analysts’ predictions of a short-term support retest come true.
With a retracement now in effect, much is at stake for traders as they investigate altcoins while Bitcoin itself cools its upside. It appears to be business as usual for Bitcoin, with network fundamentals already at or near all-time highs.
BTC Price: $30,000 Hangs in the Balance
BTC/USD marks its first major support retest since hitting ten-month highs above $31,000 last week. Traders and analysts had widely predicted the move, arguing that it would constitute a healthy retracement to prepare for the uptrend.
It remains to be seen how the price performance will impact hodlers, but the temptation to sell at ten-month highs must be clear, with the percentage of the overall BTC supply now in profit standing at an impressive 75%.
Re-bought everything that I took profit on.
I'll reduce below $29.7K BTC and $2K on ETH.
Worst case scenario, I make a little less money on the overall positions. Best case scenario, I make a lot of money.
But generally speaking, risk is definable enough for me to re-enter. https://t.co/WH3vUVciY8
— Loma (@LomahCrypto) April 16, 2023
Earnings Dominate Macro Debate
The coming days are set to offer risk asset traders some comparative respite, with earnings due from heavyweights such as Tesla and Netflix, as well as a slew of banks. While Tedtalksmacro, a financial commentator, describes the current environment as highly favorable to continued Bitcoin upside, consensus among market participants is hard to ascertain when it comes to stock markets themselves.
Bitcoin Mining Difficulty Eyes Fifth Record-High in a Row
Bitcoin network fundamentals are offering nothing but new all-time highs, with difficulty set to inch higher for the fifth time in a row since the start of 2023. Hash rate is also continually setting new highs, but hash rate changes in and of themselves may not be relevant as a yardstick for Bitcoin health if measured using exact figures.
In Bitcoin, Only Old Hands Remain
As $30,000 appears and gets tested as support, the temptation to sell among those who weathered the 2022 bear market is increasing. More than three-quarters of the mined BTC supply is now in profit, the most in a year, and a clear incentive to take some profit off the table.
Long-term holders (LTHs) currently outnumber short-term holders (STHs) or speculators significantly. The 2022 bear market sparked a shakeout which has left the market more resilient to price fluctuations.
#Bitcoin is getting towards the long areas.
Back towards the range low, through which a sweep can be granted as an entry point towards $32K.
$28,600 could also be a long entry, but then I think we won't be starting to make new highs, for now. pic.twitter.com/C5ZqJjkPap
— Michaël van de Poppe (@CryptoMichNL) April 17, 2023
Crypto “Greed” Inches from November 2021 Peak
Bitcoin may be far from its all-time highs of $69,000, but one metric rapidly homing in on repeating the climate of November 2021 is the Crypto Fear & Greed Index. Fear & Greed has a score of 69/100, just 10% away from its 75/100 mark from when BTC/USD traded at its most recent peak.
The return to $30,000 was marked by a rapid increase in “greed” throughout the crypto market. As of April 17, it gives a good indication of when to look to de-risk and be cautious.