Bitcoin its $40,6K, Dogecoin (DOGE) Up 29% After Musk Confirms Twitter Purchase

The cryptocurrency market Bitcoin was under pressure in the early hours of April 26, but a small spurt of bullish price movement followed news that Elon Musk had struck an agreement to buy Twitter for $44 billion.

Data from CoinCu shows that after dropping as low as $38,210 in the opening trading hours on Monday, Bitcoin (BTC) price staged a 5.58% rally to hit an intraday high at $40,666 as news of Twitter’s sale spread across news outlets.

Here’s a look at what analysts and on-chain data have to say about Bitcoin’s short-term outlook.

Declining exchange reserves point to strong accumulation

The recent bearish sentiment that has dominated the crypto market was addressed by crypto trader and pseudonymous Twitter user ‘Phoenix’, who posted the following chart showing the decline in Bitcoin held on crypto exchanges, indicating that is point toward a strong accumulation phase.

Bitcoin is still bullish according to historical macro cycle bottoms

On-chain data firm Whalemap suggests that while the current correction is not over, a “generational bottom” is on the horizon and as the chart shows, buying these events tend to be very profitable for investors.

As shown on the chart, the current price for BTC is well above the line that has previously marked the bottom of each macro cycle. This can be interpreted a couple of different ways – either the bearishness that has dominated the market is unwarranted at the current levels or the bull market outlook is still strong. Alternatively, one could infer that the market could be in for a real gut punch if the current weakness culminates with a final flush out to the sub-$20,000 region.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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