Bitcoin may adjust downwards again.
The average daily transaction volume of Bitcoin has reached another all-time high in the past seven days, which is considered the first time since December 2017. According to data from IntoTheBlock, the total number of transactions per day during the week starting from April 24, 2023 was 396,350 indicating an increased usage of the blockchain network.
Glassnode, a blockchain data aggregator, reported that the average 7-day change in the number of transactions on the Bitcoin network has peaked at 426,337.14. Additionally, on April 29, Wu Blockchain a cryptocurrency news agency, linked this increase in activity to the rising demand for Ordinals Inscriptions.
Ordinals Inscriptions is similar to NFTs, which can be recorded in the smallest unit of Bitcoin, Satoshi. As a result, BeInCrypto reported at the beginning of last week that these recordings were rapidly increasing after a significant decline earlier in the month.
However, there is still a trend that suggests the amount of transactions on the Bitcoin network may gradually slow down according to various important metrics such as trading volume, daily active addresses, circulation and network value to transaction ratio (NVT). These factors may contribute to the slowdown.
Analyst Justin Bennett suggests that Bitcoin is preparing to stabilize its base and he has told his Twitter followers that there is a large accumulation of short stop orders above the $30,000 price level.
According to Bennett's analysis, there is a chance that the BTC price will slightly increase to eliminate investors who have opened short positions and then the price will quickly drop. "Let's see if BTC can stay above $30,000 this week" he said.
Although Bennett predicts that the Bitcoin price will increase in the short term, he believes that BTC will stabilize quickly after this level. Crypto analysts predict that BTC may drop to $26,800 before rising again. "What we see from BTC is not surprising after the volatility this week" Bennett shared a heatmap of Bitcoin which shows traders who are in long positions at the $26,000 price level.
Technical analysis data (5H)
Resistance: 28332.6, 28621.3, 28937.6
Support: 27727.6, 27411.3, 27122.6
Source: Investing.comPivot Points May 2, 2023 10:06 AM GMT+7
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
| Classic | 27122.6 | 27411.3 | 27727.6 | 28016.3 | 28332.6 | 28621.3 | 28937.6 |
| Fibonacci | 27411.3 | 27642.4 | 27785.2 | 28016.3 | 28247.4 | 28390.2 | 28621.3 |
| Camarilla | 27877.6 | 27933.1 | 27988.5 | 28016.3 | 28099.5 | 28154.9 | 28210.4 |
| Woodie's | 27136.4 | 27418.2 | 27741.4 | 28023.2 | 28346.4 | 28628.2 | 28951.4 |
| DeMark's | - | - | 27569.5 | 27937.2 | 28174.5 | - | - |
Buy/Long 1: If the price touches the support level in the price range of 27411.3 - 27727.6, but cannot break through the support level at 27727.6, you may set the TP at around 28621.3 and SL at around 27122.6, or according to the acceptable risk.
Buy/Long 2: If you can break through the resistance level in the price range of 28332.6 - 28621.3, you may set the TP at around 28937.6 and SL at around 27411.3, or according to the acceptable risk.
Sell/Short 1: If the price touches the resistance level in the price range of 28332.6 - 28621.3, but cannot break through the resistance level at 28332.6, you may set the TP at around 27411.3 and SL at around 28937.6, or according to the acceptable risk.
Sell/Short 2: If you can break through the support level in the price range of 27411.3 - 27727.6, you may set the TP at around 27122.6 and SL at around 28621.3, or according to the acceptable risk.
Technical Indicators May 2, 2023 10:06 AM GMT+7
| Name | Value | Action |
| RSI(14) | 37.713 | Sell |
| STOCH(9,6) | 92.008 | Overbought |
| STOCHRSI(14) | 0.000 | Oversold |
| MACD(12,26) | -47.200 | Sell |
| ADX(14) | 45.102 | Sell |
| Williams %R | -9.738 | Overbought |
| CCI(14) | -147.4232 | Sell |
| ATR(14) | 388.9286 | Less Volatility |
| Highs/Lows(14) | -724.7857 | Sell |
| Ultimate Oscillator | 43.571 | Sell |
| ROC | -4.636 | Sell |
| Bull/Bear Power(13) | -1319.7340 | Sell |
|
Buy:0 Sell:8 Neutral:0 Summary:Strong Sell |
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