The price of Bitcoin (BTC), after a sharp increase on April 25 and 26, BTC underwent days of relative stability, only to drop by over 4% as last weekend came to a close.
In a tweet on April 30, crypto analyst Ali Martinez put forward an observation regarding Bitcoin’s price direction, highlighting two critical levels that may play a role. Martinez notes that a significant support level is evident, with 1.85 million addresses purchasing 650,000 BTC between the price range of $27,440 and $28,315.
Additionally, Martinez identifies a key resistance level, with 1.37 million addresses having acquired 530,000 BTC between $29,260 and $30,130. These levels could potentially influence Bitcoin’s future price action.
At the time of writing, Bitcoin’s price sits at $28,551, placing the digital asset just above the support level mentioned in the tweet.
Bitcoin price drops with the start of May
After initially rising from $27,400 on April 25, Bitcoin reached a resistance just below $30,000 on April 26, and the coin spent the weekend trying to breach the resistance at $29,260. BTC reached the height of $29,800 on three occasions over the past week — Once on April 26, another time on April 27, and one last time on April 30.
However, with the arrival of the new week, Bitcoin’s price dropped to roughly $28,500, which is where it sits at the time of writing. In the past 7 days, BTC price has grown by 4.13%, but on a 24-hour chart, it is 2.35% down.
The price drop comes ahead of the Federal Reserve’s monetary policy decision, which is expected to be made on Wednesday, May 3. The uncertainty has caused the majority of crypto assets to trade in the red, moving toward neutralizing the weekly gains seen in the final days of April.
For now, traders are waiting for one of the levels to break. However, it remains to be seen which level will break first.
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