Key Points
- Bitcoin’s post-halving recovery stalled due to automated trading algorithms selling BTC.
- Despite a promising comeback, Bitcoin faced strong resistance, with sellers outnumbering buyers.
Bitcoin’s recovery after the halving faced a roadblock on April 22 as automated trading algorithms sold off Bitcoin.
Bitcoin’s Struggle to Maintain Momentum
The momentum of Bitcoin’s price began to wane after reaching weekly highs of $66,546. Despite the promising recovery from the previous week’s lows, the cryptocurrency faced significant resistance.
According to a popular trader, the market was primarily one individual bidding against a multitude of automated selling algorithms. The trader also noted that liquidity was moving closer to the spot price, a typical tactic to attract the market.
Market Dynamics and Predictions
Data showed a surge of bids between $64,000 and $65,500 on April 22, with a similar increase in ask liquidity between $66,500 and $67,750. The trader speculated whether these were “spoof orders”.
Analyst Matthew Hyland pointed out that Bitcoin’s 10-week simple moving average (SMA), a key bull market support line, was being maintained at the latest weekly close. The 10-week SMA was $65,686 at the time of writing.
Another popular trader and analyst suggested that Bitcoin’s price action could return lower to liquidate long positions before definitively reversing upward. They noted that Open Interest was already increasing, suggesting a potential move down to wipe out long positions before a significant price increase.
