Bitcoin price showed a 4.80% increase on Friday, reaching a high of $83,378, and this week has been bullish overall with higher highs and higher lows indicating strength. However, one top trader, Atlantis7, has raised suspicions about this uptrend, calling it an ‘exit pump’ due to ‘bizarre flows on BTC.’
According to Atlantis7, the recent rally in Bitcoin price was driven by passive limit orders on Coinbase and Binance, along with aggressive spot buyers on OKX. The trader finds this outlook bizarre because while limit orders were getting executed, the cumulative volume delta was dropping with a positive Coinbase premium.
The unusual flow of events has led to speculation about a potential Bitcoin price crash. Atlantis7 suggests that this bizarre flow could be a result of institutions accumulating Bitcoin as a short-term escape into safe-haven assets amid the US-China tariff war. This explanation aligns with the fact that Gold has seen a 9.27% increase since April 9.
Despite the positive outlook on Bitcoin price, Atlantis7 expresses a ‘funny feeling’ that the recent rally could be a coordinated exit pump. The trader mentions a very coordinated one-time framing across tickers, trapping and liquidating shorts, followed by a dump of inventory. The price action seems inorganic and lacking widespread participation.
On a macro level, the Global M2 Money Supply plays a crucial role in determining whether investors rotate into risk-on or risk-off assets. The recent reversal and uptrend in M2 hint at a potential bullish reversal for Bitcoin, suggesting that capital may flow into the cryptocurrency as a modern-day safe-haven asset.
While Bitcoin price appears bullish, investors must remain cautious as the Trump-Xi trade war continues to unfold. The ongoing tariff battle between the US and China could disrupt the markets’ normal flow, leading to significant volatility and preventing a clear directional move. Traders need to monitor Bitcoin’s technical analysis closely and keep an eye on key levels to watch.
Currently, Bitcoin is trading within the $80.9K to $88.4K zone, where 70% of the volume has been transacted since February. The highest traded volume level in the past six weeks is at $83.1K, which is a key resistance level. A breach of this level could propel the price to the range high at $88.4K, while a rejection may lead to a bearish bias and a potential price crash.
In conclusion, the $83.1K level is critical in determining whether Bitcoin price will remain bullish or flip bearish. Investors should monitor this key level closely along with support levels at $80.9K and potential downside targets at $77K or $74K. Despite the bullish outlook, caution is advised in light of market uncertainties and geopolitical tensions.
