Categories: Bitcoin

Bitcoin sellers keep BTC price action in check amid $45K ‘fakeout’ warning

Bitcoin (BTC) took a breather from its latest upside on March 26 after predicted resistance kicked in just under the yearly open.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin fakeouts: Third time’s the charm?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD lingering around $44,500 Saturday, preserving the lion’s share of the week’s progress.

Traders had sounded the alarm on a possible retracement after a large sell wall appeared on major exchange Bitfinex. In the event, sell-side pressure prevailed, halting bulls’ advance at just above $45,000.

“Still waiting to see how price trades around yearly open. The prev times I targeted it we came up short but got very close although this time looks better for BTC. Almost there,” popular trader Pentoshi summarized.

Fellow Twitter user B C Richfield meanwhile highlighted the need to crack the current local high of $45,135, after two “fakeouts” on lower timeframes. A failure to do so, he argued prior to the high occurring, would be bad news.

https://twitter.com/BC_Richfield/status/1507315934821863431?ref_src=twsrc%5Etfw

Another topic of debate from the week, that of Blockchain protocol Terra’s multibillion-dollar Bitcoin buy-in, continued, executives adding roughly another 3,000 BTC to a wallet now containing 24,954 BTC ($1.1 billion).

Media attention and excitement increased in step, with analytics firm Messari highlighting “increased usage and fundamentals” as driving the price of Terra’s LUNA token while other smart contract tokens traded down.

LUNA/USD was nonetheless in the same position it traded at last weekend at the time of writing, while both Bitcoin and largest altcoin Ether (ETH) were up over 6% during the same period. 

Fees remain a bargain

For all the focus on a turnaround coming from within the crypto industry, however, for the mainstream, Bitcoin remained firmly under the radar.

Related: After years of doubts and concerns, it is finally Bitcoin’s time to shine

In addition to Google Trends data showing an ongoing lull, analyst Benjamin Cowen noted that Bitcoin’s low transaction fees underscored a lack of activity.

“To some degree, Bitcoin transaction fees tell you what you need to know,” he said.

“Clearly the tourists are gone at the moment. But they will return. They always do.”

Bitcoin total transaction fees chart. Source: Blockchain

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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