Bitcoin price is currently showing a small retracement as it is losing market share to altcoins.As of the time of writing, Bitcoin is trading at $ 57,680, with a slight loss of 2.8% on the daily chart.
On the weekly and monthly charts, BTC rose 3.4% and 18.4% respectively.
Famous trader “Teddy” believes that the current price action is positioning Bitcoin at a very important level. According to its analysis, the cryptocurrency is retesting exponential price action (EMA), a measurement that focuses on recent price movements over the past 21 days. Teddy identified 40,000s as support.
Analyst firm Whalemap stated that there is an “intense war” for Bitcoin in the support and resistance zone. As the picture below shows, Bitcoin price is at $ 57,000 and has a major support level at $ 55,172. Losing these levels could lead to an elongation of the downtrend to test the $ 40,000 in support, as Teddy noted. Whalemap also added the following statements:
“Bitcoin is bounded by the fine point of $ 60,045. Is this the calm before the storm? ”
Why altcoins outperform Bitcoin? Supporting the above, analyst Willy Woo said that $ 54,000 is the strongest “support area” Bitcoin has had since $ 11,000. In this context, the analyst has identified a pattern in BTC “wallet flows” where a consolidation period comes before reaching the new ATHs:
“Typically, BTC builds a strong price discovery base 2-3 times above the all-time high before moving to the bull market highs (previous cycle). This stage is almost complete. “