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▲ Bitcoin (BTC)/ChatGPT generated image
Bitcoin is attempting to break past $79,000, aiming to firmly settle above its key weekly indicator, the 20-week moving average. This, combined with an influx of institutional funds and expanded national adoption, is creating a noticeable trend of intensifying supply pressure.
Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, stated in a video released on April 22nd (local time) that the current market is at a turning point, distinguishing between bull and bear markets. Gambardello analyzed that Bitcoin (BTC) is attempting to reclaim the 20-week moving average on the weekly chart, and a breakthrough of this level could signal a complete recovery from the effects of the 2022 downturn. Ethereum (ETH) is moving near the $2,500 resistance level, testing the potential for a broader altcoin market rebound.
Increased demand from institutions and nations is directly pressuring the supply structure. Strategy, led by Chairman Michael Saylor, has continuously accumulated Bitcoin, expanding its holdings, while Vanguard has increased its stake in Strategy, thereby expanding its indirect Bitcoin exposure. Russia has passed legislation to use virtual assets as a trade settlement method amidst sanctions, stimulating inter-state competition.
The policy environment is also moving in a direction that stimulates market expectations. Kevin Warsh, a Federal Reserve chairman candidate nominated by Donald Trump, mentioned that virtual assets are part of the U.S. financial system, hinting at their potential inclusion in the mainstream. Furthermore, changes in the leadership of the Securities and Exchange Commission and the rise of pro-crypto figures are contributing to expectations of reduced regulatory uncertainty.
Within the market, there's a clear trend of reducing circulating supply. Bitmine staked approximately $141 million worth of Ethereum, locking up supply, which resulted in 4.12% of the total supply being removed from the market. Saylor expressed his intention to accumulate Bitcoin in amounts exceeding the available sellable supply, demonstrating a strong will to absorb supply.
The rise in Bitcoin dominance to 60.5% is interpreted as a pattern similar to past liquidity expansion phases. Gambardello emphasized that whether this week's candle closes above the 20-week moving average is a key variable determining the future direction of the market. With technical breakout attempts and macroeconomic environmental changes coinciding, the market is on the verge of entering its next phase.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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