Bitcoin Is Going Towards an Explosive Movement, Analysts See
The prolonged bout of sideways trading of Bitcoin (BTC) has seen throughout the past few days. And it might soon be coming to an end. This was due to analysts noting that some technical factors point to the possibility that an explosive movement is imminent.
In addition to that, there is also a mass exodus of Bitcoin from exchanges, based on the new data. And this could be a hint that investors had been accumulating throughout the cryptocurrency’s recent downtrend. Then, they are starting to move their crypto to cold storage.
If this will happen, the recent accumulation might be a sign that this following bout of heightened volatility will favor buyers.
Recently, Bitcoin is trading more just under 1% at is the current price of $6,750. And this is where it has been trading around within the past couple of days.
Aside from that, this consolidation comes close on the heels of the recent uptrend of BTC. As a result, it led to rally from lows within the $3,000 region to highs of $6,900. So far, the resistance in this region has been proven to be insurmountable. However, consolidation below resistance indicates a historically bullish sign.
A famous cryptocurrency analyst on Twitter, Big Cheds, said in a recent that the benchmark crypto’s Bollinger Bands are beginning to pinch, signaling a major movement is imminent.
He stated, “Bitcoin 4 hour – BB’s starting to pinch, expect volatility soon. Get the popcorn ready.”
In a separate tweet, Cheds thinks that the next movement will make put BTC into a rally to its bearish confluence around $7,600. And this may be where it loses its momentum and stalls.
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Investors, BTC, and Exchanges
Another famous on-chain analytics firm, Glassnode, noted in a tweet that cryptocurrency exchanges had shown a massive outflow of Bitcoin in recent times. This makes these exchanges see their lowest BTC in approximately eight months.
They explained, “Despite the volatility, Bitcoin holders appear to be withdrawing their funds from exchanges. Outflow has been increasing daily since March 18. According to our label, BTC exchange balances are the lowest they’ve been in 8 months.”
Now, this looks like it is signaling that retail investors who have been accumulating Bitcoin during the course of the recent downtrend are moving towards cold storage. And this is a bullish sign that signals the next explosive movement will favor buyers.
Canadian Revenue Agency (CRA)
The Canada Revenue Agency (CRA) has asked the court-appointed bankruptcy trustee for the defunct Canadian crypto exchange QuadrigaCX, EY, to submit all of the exchange’s user information.
On March 24, court documents filed with the Ontario Superior Court of Justice detail the demand. This spans 750,000 documents on the exchange’s 115,000 customers.
The documents indicate, “The Trustee has advised CRA that it intends to simply produce a copy of the full EDiscovery Database, redacted only for the privilege, in response to the CRA Production Demand.”
EY collected the requested data from both internal and third-party sources. And they are spanning personal user information, account balances, and transaction histories from 2016 to 2018.
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