Bitcoin (
BTC
) is entering the final days of April with uncertainty as its price falls to its lowest levels in 10 days. The cryptocurrency is struggling to break through significant resistance levels after a week of selling during Wall Street trading hours. This month has been challenging for Bitcoin bulls due to macro and geopolitical instability. The April candle close is crucial to avoid becoming Bitcoin’s worst month of 2024 so far.
The current landscape is problematic, with significant seller interest between the spot price and new all-time highs. Although price discovery is only $12,000 away, it seems out of reach. Market observers are now looking for key areas of support if downside pressure continues.
However, optimists argue that BTC/USD is merely ranging, and time will lead to a continuation of the bull market experienced in Q1. This week, Hong Kong is set to launch its own spot Bitcoin exchange-traded funds (ETFs), following in the footsteps of the United States. This development may contribute to Bitcoin’s comeback.
Bitcoin is at risk of having its worst month since November 2022, with losses exceeding 12% in April. The monthly close will be a crucial focus for BTC price, with the monthly and weekly open levels acting as pivotal support.
In terms of macroeconomic events, the upcoming interest rates decision by the United States Federal Reserve is significant. Recent macro data prints have concerned risk-asset bulls, as lower rates may be delayed. Bitcoin and risk assets may not be heavily impacted unless economic circumstances worsen significantly.
In Asia, Hong Kong’s launch of spot Bitcoin ETFs is an important moment in Bitcoin institutional adoption. The Asian market has a larger user count than the US and European markets combined, indicating potential demand for these products. However, regulatory hurdles may restrict investor participation from mainland China.
Bitcoin is currently close to significant support levels, particularly at $60,000 and $58,000. The short-term holders (STH) of Bitcoin, who make up the speculative end of the investor spectrum, are closely watched. The STH realized price forms a key level of support. Additionally, two mid-term exponential moving averages (EMAs) known as the “bull market support band” are lining up to provide support in case of a deeper retracement.
Despite lackluster price action, smaller retail investors are showing renewed interest in Bitcoin. Wallets with less than 100 BTC are increasing their exposure, indicating that retail holders are accumulating Bitcoin once again.
Please note that this article does not provide investment advice. Readers should conduct their own research and analysis before making any investment decisions.