Bitcoin hits $40K, investors pump Dogecoin (DOGE) after Musk confirms Twitter purchase

Although the cryptocurrency market was under pressure early in trading hours on April 25, there was a brief period of price action after news headlines reported that Elon Musk had agreed to buy Twitter for $44 Billion.

Cointelegraph Markets Pro and TradingView data show that Bitcoin (BTC), after falling as low as $38,210 on Monday, rallied by 5.72% to reach an intraday high of $40,366 following news about Twitter’s sale.

BTC/USDT 1-day chart. Source: TradingView

Below is a list of what analysts and other data have to say regarding Bitcoin’s short-term outlook.

Strong accumulation is possible due to declining exchange reserves

Crypto trader and pseudonymous Twitter User Phoenix addressed the recent bearish sentiment in the crypto market. He posted the following chart, showing the decline of Bitcoin on crypto exchanges. This indicates that there is a strong accumulation phase.

BTC exchange net position change Source: Twitter

Phoenix said,

What makes you believe we are at the point of BTC distribution right now? These simple metrics show me that we are at Accumulation again for months. It’s a skill you may not have: patience.

According to the historical macro cycle bottoms, Bitcoin is still bullish

Whalemap, an on-chain data company, suggests that the current correction may not be over but that a “generational bottom” is on the horizon. As the chart illustrates, these events are very profitable for investors.

Bitcoin price realized by address. Source: Twitter

The chart shows that the current price of Bitcoin is much higher than the line which marked the bottom in each macro cycle. This could be read in two ways. Either the market’s current bearishness is not justified at these levels, or the bull market outlook remains strong. One could also infer that the market is in for a serious gut punch if current weakness ends in a final flush to the sub-$20,000 area.

Related: Bitcoin bears tighten grip on BTC now at $40K as the new resistance level

Is there a bullish continuation above $39,000.610?

Market analyst Michael van de Poppe posted this chart, which provided a final insight into Bitcoin’s future. It highlighted $39610 as a critical level that bulls must overcome in order to achieve more upside.

BTC/USDT 4-hour chart. TradingView

van de Poppe said,

“Great bullish divergence in Bitcoin and bouncing from higher levels here. Bullish continuation looks possible.

The total cryptocurrency market is now worth $1.859 trillion. Bitcoin’s dominance rate at 41.2%.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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