Bitcoin: it's not the end of the rally

BTC was down 1.1% on
Tuesday, ending the day near $47,400, and has been remaining close to that
level on Wednesday morning.

Bitcoin: return of the
bullish trend

According to
CoinMarketCap, the total capitalization of the crypto market decreased by 0.7% over
the day to $2.13 trillion. The Bitcoin dominance index remained at 42.1%.

The Cryptocurrency
Index of Fear and Greed for Wednesday is down 1 point to 55, but still is on
greed territory.

Bitcoin slowed down
ahead of strong resistance at $48,000, near which the 200-day moving average
also lies. The bulls are taking a tactical breather after the 28% rally from
the lows seen on March 14th. At the same time, the positive mood on the global
stock markets sets up that we will already see a test of this important level
today.
The FxPro Analyst Team mentioned that now we will see the return of the
bullish trend only after a couple of days of confident growth above the 200-day
Moving Average. But even then, many participants may still have doubts about the
rally since, in December, under similar conditions, it was not possible to
develop an offensive.

Ethereum lost 0.5%, as
other leading altcoins from the top ten fell in price, with -0.8% (Binance
Coin) to -4.1% (XRP). The only exception was Terra (+7%), which reached its
all-time high.

Musk will create a
network

According to
CryptoQuant, Crypto whales have started sending bitcoin to exchanges again,
which is a wake-up call. Typically, investors send cryptocurrencies back to the
exchanges for their subsequent sale. CryptoQuant does not exclude that BTC will
move to an active decline in the near future. However, the sale of bitcoins can
also take place to buy altcoins, which are growing stronger than the first
cryptocurrency in the bull market.

DataDash CEO Nicholas
Merten believes that short-term investors and traders with leverage influence
the volatility of bitcoin, and "whales" influence the growth. In his
opinion, crypto whales have been buying up BTC over the past six months.

CEO of Tesla, Elon
Musk, plans to create his own open-source social network with support for the
DOGE cryptocurrency. Meanwhile, the Biden administration has proposed
tightening tax reporting rules for cryptocurrency holders.

This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.