Bitcoin Price At Key Support, Retail FOMO Finally Returning?

Bitcoin (BTC) has remained relatively quiet since last week’s dip. We have reported in these market updates several times in recent days that a consolidation phase may follow before bitcoin breaks out again.

Still, we see that market sentiment is increasingly positive and analysts are increasingly bullish† Many analysts therefore expect that it will not be too long before the price breaks out again.

Bitcoin price rises cautiously

The bitcoin price has been consolidating just above USD 46,000 in recent days. Yesterday morning, the range in which bitcoin moved shrank to the range between USD 46,000 and USD 46,250. However, last night bitcoin lost traction and briefly dipped to $45,300. From there, the price made another nice jump, immediately breaking through $46,250, and then arrived at $46,500.

Last night, bitcoin held above this USD 46,500 and continued to climb cautiously. Still, the price seems to be struggling for the time being to break through the resistance around $46,700. The bitcoin price is at $46,650 on KuCoin and $42,500 on Bitvavo at the time of writing. With that, BTC is 1.1% in the plus today.

BTC from resistance to support

Despite the crypto market becoming increasingly bullish, we still have to bear in mind that a lot of fear is gripping traditional financial markets. This concerns matters such as the war in Ukraine, the rapidly rising inflation and energy prices and the corona lockdown in China. This makes investors insecure and a blow to the traditional markets will most likely spill over to crypto as well.

For now, it is important for the resistance to swing back to support around USD 46,700. Then the price could soon test the $ 48,000 again, although it is still questionable whether there is enough momentum this time to break through. The next support levels to consider are the 200 days exponential moving average (EMA) around $44,800 and the 21-day EMA around $44,400.

BTC Accumulation and Retail FOMO

Meanwhile, it turns out on chain data that the accumulation of BTC is still continuing and even accelerating. It looks like both the whalesthe major investors, and the shrimpsthe small investors, now that both are stocking up on BTC.

Analyst On-chain College reports that the last time the BTC balance on exchanges was as low as it is now was 1,311 days, or 3.5 years ago.

Analyst PlanC also reports that the last time 95,000 BTC netted out of exchanges in 30 days, the price made a significant upward trend. Now, 97,255 BTC have already been removed from crypto exchanges in the past 30 days. Is a sixth uptrend following?

There are even signs that we may finally have the ‘retail FOMO’ see return. At the beginning of last year, the bull market attracted many new private investors, causing the price to rise even faster. Since then this fear of missing out (FOMO) not seen again, which may have caused the price to hang. Will we see a trend shift again?

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