Bitcoin plummeted below the $40,000 mark after taking a beating across the Easter weekend. Across that period, whales and other institutional investors rushed to buy the dip as they anticipated an incoming Bull Run that could be taking shape.
Since last week, Bitcoin outflows from crypto investment products and funds have hit $73 Million. Across April, the overall outflow is at over $196 Million.
The BTC/USD pair was embarking on a decent recovery wave as of press time. Price recovery action has pushed it above $38.5k, and it is currently trading at $38,565 – up by 1.8% over the last 24 hours.
Additionally, a short-term contracting triangle is building on the hourly timeframe of the BTC/USD pair, with resistance near $39k. To commence a significant upward surge, the pair now needs to break through the $39,100 and $39,600 resistance levels.
Bitcoin’s upward rally
As of press time, the price of bitcoin had created a base above the $38,000 mark. It launched a strong recovery wave, recuperating above $38,000. The price stayed in the positive territory, reaching above $38,400. It went above the 100-hourly simple moving average and broke through the $38.5k barrier.
On the upside, immediate resistance is located near $39,500. The next significant level of resistance could be $39,100. To start a strong uptrend, the price must first settle above $38,900 and then clear $39k. If the bulls succeed, the price could reach the $42,500 resistance level. Any further gains could necessitate a move towards $43,200.
Whales and institutionalized outflows
BTC volumes on major crypto exchanges decreased as its price fell in recent weeks. Additionally, the outflow of BTC from cryptocurrency trading platforms also increased. As per CoinShares’ weekly digital asset fund flows report:
“Investors look to have sold out of Short-Bitcoin investment products, following a few weeks of inflows. Outflows last week were US$1.8m, representing 16% of total assets under management. Blockchain equities remain unaffected with inflows totaling US$23m last week,”