Market Analysis

Bitcoin sets up lowest weekly close since early March as 4th red candle looms


Bitcoin (BTC) stayed below $40,000 on April 24 as the weekly close looked set to be a painful one for bulls. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Binance bids slowly thin below spot

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD failing to retake the $40,000 mark after losing it before the weekend.

As traders braced for classic volatility into the weekly close, Bitcoin looked decidedly unappetizing. At $39,500 on Bitstamp, the spot price at the time of writing would constitute the lowest weekly close since the week of March 7.

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

“Pretty obvious uptrend since mid-to-late January imo. If we have our 4th RED weekly close today could be bad though,” Twitter account CryptoBull commented in a discussion with popular analysts Johal Miles and Pentoshi.

Four red weekly candles in a row would be a rare event, the account added, noting its absence for the past two years on the weekly chart.

“Hasn’t happened since 6/2020. But after that happened we went to up to ATH,” it wrote.

Data from on-chain monitoring resource Material Indicators meanwhile showed thinning bids below spot price, which nonetheless continued to retest $40,000 resistance.

Binance order book data chart. Source: Material Indicators

France keeps markets on edge

Outside technical signals, attention focused on France Sunday as the Presidential elections came to a close.

Related: Bitcoin funding rates show demand to short BTC as $40K becomes resistance

With incumbent Emmanuel Macron expected to win a second term, warnings nonetheless painted a dire market reaction in the event that his rival, Marine Le Pen, won the presidency.

“It would be a terrible day for markets,” Ariane Hayate, fund manager at Edmond de Rothschild Asset Management, told Bloomberg.

“The first impact would be on the French 10-year bond yield that could go through the roof.”

As Cointelegraph reported, the European Union’s financial fragility has been brought to the fore as inflation soars and central bank balance sheet reductions have yet to kick in.

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