Bitcoin’s Bullish Indicators Amidst Volume Caution and Market Concerns

Scott Melker highlights recent bullish indicators for Bitcoin, including its closure above the 50-day simple moving average. However, he warns of cautious market behaviour due to low trading volumes and potential economic concerns. Resistance at $85,000 may challenge further price gains, with risks of a drop to around $75,000 if volumes continue to decline.

Bitcoin recently exhibited bullish signals, as reported by Scott Melker, known as The Wolf Of All Streets. On April 18, Bitcoin (BTC) closed above the 50-day simple moving average (SMA) for the first time since February 3, indicating a possible positive shift in the market. Despite the price correction to $84,349, it remains above the SMA level of $84,202.

However, caution is advised despite these bullish signs. Bitcoin continues to lag below the 50-day exponential moving average (EMA), currently at $85,328. This discrepancy raises concerns about the sustainability of the bullish momentum. Securing above the EMA could be crucial for confirming a stronger market trend.

Moreover, low trading volumes are indicative of cautious investor sentiment. On April 17, trading volumes on major exchanges only reached 8,000 BTC, a sharp decline from 26,000 BTC just a week earlier. This suggests that many investors may be awaiting favourable macroeconomic news, which has been scarce due to ongoing trade tensions and potential economic recession fears.

Bitcoin faces a significant resistance at the $85,000 mark, tied to a long-term descending channel that has formed since its January peak. Persistent low volumes could lead the cryptocurrency to test lower support levels at the midline of the channel, approximately $75,000. Market dynamics will play a critical role in Bitcoin’s future trajectory as investor sentiment evolves.