Bitcoin (BTC), the entire crypto sector and the S&P 500 index are correcting on April 6, which highlights the tight correlation between the two sectors.
Despite the weakness, institutional investors do not seem to be halting their purchases, suggesting that they remain bullish in the long term. Terra used the dip to buy an additional 5,040 Bitcoin, which takes its total holdings to 35,768 Bitcoin.
Terra was not alone in this venture. MicroStrategy, the treasury with the largest Bitcoin reserves, also increased its holdings by 4,197 Bitcoin through its subsidiary MacroStrategy. After the latest purchase, the business intelligence firm holds 129,218 Bitcoin.
Another sign of a strong appetite for Bitcoin is seen in the inflows to the two Canadian Bitcoin exchange-traded funds. According to Glassnode data, the funds boosted their holdings to an all-time high of 69,052 Bitcoin, an increase of 6,594 since January.
Could Bitcoin and altcoins enter a deeper correction or will lower levels attract buying? Let’s study the charts of the top-10 cryptocurrencies to find out.
After staying in a tight range between the 200-day simple moving average (SMA) ($48,240) and $45,000 for the past few days, the bears made their move and pulled the price below the 20-day exponential moving average (EMA) ($44,567).
The relative strength index (RSI) has dipped to the midpoint and the 20-day EMA is flattening out. This suggests that the bullish momentum could be weakening. If the price rebounds…