The price of Bitcoin is currently showing a small pullback as it loses market share against altcoins. At press time, Bitcoin was trading at $ 57,680 with a slight loss of 2.8% on the daily chart. On the weekly and monthly charts, BTC is up 3.4% and 18.4% respectively. Market capitalization remains above $ 1 billion.
Trader "Teddy" believes that the current price action has positioned Bitcoin at a crucial level. According to his analysis, the cryptocurrency is retesting its exponential price action (EMA), a metric that focuses on recent price fluctuations, from the last 21 days. Teddy finds a "noticeable resistance point" at current levels. He calculated the low 40,000 as support. The merchant added: "If you bounce from here, you will find a Lambo in your tree."
For the blind homies pic.twitter.com/lXaU6zPLaZ
– NFTeddy (@TeddyCleps) April 4, 2021
Analyst firm Whalemap has indicated that there is an "intense battle" in the support and resistance zone for Bitcoin. As the image below shows, the price of Bitcoin has a major support level at $ 57,000 and $ 55,172. Losing these levels could lead to an extension of the downtrend to test the support at $ 40,000 as indicated by Teddy. Whalemap I add:
“Bitcoin is being capped by the $ 60,045 level quite a bit. Is this the calm before the storm?
Why do altcoins outperform Bitcoin?
In support of the above, analyst Willy Woo said that $ 54,000 is the strongest “support area” that Bitcoin has had since it stood at $ 11,000. In that sense, the analyst has determined a pattern in BTC's “wallet flows” in which a consolidation period precedes a jump to new ATHs. Woo He said:
“Typically, BTC forms a solid price discovery foundation 2-3 times above the all-time high (previous cycle) before launching into the bull market highs. This phase is almost complete ”.
Meanwhile, investor movements in Asia have been relevant to Bitcoin price action. CryptoQuant CEO Ki-Young Ji stated that "Bitcoin's fundamentals" are solid, but he is concerned about the "Korean bubble." The BTC Kore Premium Index metric is at an all-time high.
According to data from CryptoQuant, trade in the last 24 hours amounts to $ 61 billion, or 1.7% of global cryptocurrency trade. An important factor to consider is that in South Korea, taxpayers will have an exemption for their earnings if they are investing in cryptocurrencies until the end of the year.
As a result, many people in this country have chosen to allocate money to these assets. However, investors will be held liable if they continue to trade cryptocurrencies next year. Therefore, many of the new entrants could withdraw their money before the end of the year. Hence the concern of the CEO of CryptoQuant. While he believes that even if the "bubble" bursts, its impact will be small, Indian that much of the trade has gone to altcoins:
"The Korean government bans derivatives trading on Korean exchanges, so the only way to get rich in the short term is to jump on the shitcoin pumps."