The BTCUSD pair on the monthly chart shows that the crypto traders who are shorting the BTC are engulfing the previous month


The report from Bloomberg about option calls from NASDAQ: MARA will interest the trading platforms like Pocket Option and investors as BTC miners can run their mining operations without selling off their cryptocurrencies or holding. 

Ahead of the Feds Meeting, traders have moved about $1.6 billion in BTC from Exchanges in the last 24 hours which also means that there is a decrease in selling pressure. 

BTCUSD: Technical Analysis

Monthly Chart

BTCUSD monthly chart - 4th May 2022

Monthly Resistance Levels: 69000, 48300. 

Monthly Support Levels: 32950, 28600, 36500, 34000.

The BTCUSD pair drop about 23% from the high of 48300 level from its high and closing price for April. It shows that the Bears dominated the market for the month and if the trend is to continue, we are likely to see the price of bitcoin drops again to the low of February 2022 around the 34000 level. The BTCUSD pair is controlled by the crypto brokers who have short positions running after engulfing the previous month’s candle. 

The bearish engulfing has taken the bulls out of the market, and we expect the price to go lower during the trading weeks.

Weekly Chart

BTCUSD weekly chart - 4th May 2022

Weekly Resistance Levels: 52000, 48235.

Weekly Support Levels:   37390, 28600, 34000.

The price of bitcoin closed the previous week at $38488, failing to close below the $35000 mark. The bears have moved the market by over 25% in the last 5 trading weeks when the Doji candlestick indicated indecision from the market sentiments. 

The resistance zone of 48414 and the support level of 34535 will be the psychological levels for the crypto brokers as they wait for a breakout above or breakout below the zone for the bias of the market to be determined.

On the weekly chart is a bearish trend and a breakout below the consolidation will be a signal for the trend to continue selling on the weekly time frame. The support zone has been held for the last 8 weeks and the price has not seen able to go past the zone. It will interest crypto brokers to look for buying opportunities if the sellers should fail.

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Daily Chart

BTCUSD daily bullish chart - 4th May 2022

Daily Resistance 48234, 42978, 50500, 

Daily Support 40000, 35000, 37525.

The last day of the month closed a little lower than last week’s low of $37701 mark, and the month of April closed the trading day of the BTCUSD pair at 37639 creating another lower low on the daily chart. However, the price remains under a bearish trend for the past trading weeks as crypto brokers short the market.

For some weeks, the $37200 levels have been a strong zone for the Bulls and the price of bitcoin has respected the zone after several tests of the zone. If the crypto brokers who have a short position open continue to test the zone, we may see a breakout below the zone for the price to drop lower.

The price may still find its way up if the buyers can reject the seller’s attempts from the support zones. Crypto brokers and investors who want to buy the deep will lookout for an opportunity to go long when the bullish patterns come up around the zone.

Bullish Scenario:

The price of the BTCUSD pair is entering the Bullish zone we shall wait for the rejection of the price for the crypto market to change into a bullish scenario for the bullish trend.

Bearish Scenario:

The bitcoin price will continue the downtrend if the Bears can close below the support levels of 37200 on the daily time frame. We wait for the reaction of the price around the level for the bearish scenario to be confirmed.

Bitcoin BTC News Events 

How do Miners of Bitcoin generate cash apart from selling Crypto holdings? 

The number one crypto asset miners adopted a new strategy to run their operations without selling any of their crypto coins. A report gotten from Marathon Digital Holdings (NASDAQ: MARA) reveals that miners may sell Bitcoin-BTC call options as an alternative to raise funds without parting with the underlying asset (BTC). 

The CEO of Marathon Digital Holdings (Fred Thiel) also states that the company uses call option straddles, when necessary, for their customers not to miss out on the upside of the bitcoin movement, that is why they sell a call option and buy the coin at a higher price.

Another analyst from New York-based brokerage Genesis Global Trading, Joshua Lim says that the strategy is ideal in a ranging market and it will outperform a “mine and hold” scenario or “mine and liquidate strategy” because the bitcoin price has been trading between the high of $47000 and the low of $37000 in the last three months.

Conclusion and Projection

The BTCUSD pair close the monthly engulfing the March’s candlestick. Will the bearish trend continue in the new month or we shall see the Bulls push the price higher as the support zone has held in the past 3 months?

The records from Marathon’s company show that it has produced about 1257 mined bitcoin (by MARA) during the first quarter of 2022 an increase of 5566% from 191.8 mined bitcoin (by MARA) in Q1 2021. The total Bitcoin holdings are around 9373. BTC with a fair market value of about $428 million.

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This article will not be giving advice for investment. It is strictly for educational purposes. Please consult your financial advisor when trading on leverage instruments, as we will not be liable for any losses incurred. Your capital may be at risk

John Walker

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