BTC Holds $40K On Easter Morning While Risks Of Decline Haunts Traders

BTC holds $40K on Easter morning while the risks of another decline are haunting traders as well as the expectations of the coin sliding lower became the main feature of the weekend so far but let’s have a closer look at today’s latest Bitcoin news.

BTC chose compression over the Easter weekend and spared some traders a new dive below $40,000 but the derivative traders take no risks. The data from Tradignview shows that the BTC/USD acts in a narrowing range with a $40,700 range over the weekend. The pair saw little action over the weekend as the Holiday started with the US equities markets being off from the Friday and allowed crypto to avoid correlation-based volatility.

Discussing why #Bitcoin market psychology is mirroring $6K pre-capitulation.

Long Term – Bullish.
Medium Term – I see downside risk. pic.twitter.com/reAn6qHg0p

— Kevin Svenson (@KevinSvenson_) April 16, 2022

With Monday being a non-trading day, BTC was set for four days of out-of-hours trading and while that meant the correlation of the stock mattered much less, there were some other forces at play that were ready to spook the sentiment. The market liquidity stayed lower and standard but some feared that sudden moves could be exacerbated because of the thinner order books. Analyzing the derivatives moves on the weekend, Deribit Insights flagged liquidity as one consideration influencing the real-time investor decisions. Looking at the charts from trader Pentoshi, we can see a different perspective. Only a reclaim of levels beyond this narrow trading range on low timeframes will suffice for a bullish feeling on what is coming next for the BTC/USD pair. He summarized:

“44.5k most important spot for bullish momentum currently. 42k 1D Resistance. Below bias is for re-distribution and another leg down. Think buyers need to step in pretty quickly.”

Pentoshi was not the only voice predicting the long-term gain but the short-term pain for BTC which is a narrative that gathered momentum in 2022. analyst Kevin Svenson is well known on social media for his bullish sentiment on BTC and warned that the chart’s behavior was mimicking the same period before bitcoin’s bear market crash in 2018. while the event followed a period of lower lows over the year, BTC was making higher lows in 2022 and noted it will not take much for the tables to turn and to capitulate and enter:

“The difference between those higher lows and a breakdown is significant right now, so just being blindly on one side and not considering anything else is a little bit foolish in my opinion.”

BTC holds $40K while Svenson added that BTC is getting there in terms of following historical patterns of putting the lows around 800 days after the block subsidiary halving.