FX.co ★ Technical Analysis of BTC/USD for April 27, 2023

Crypto Industry News:

Bitcoin Ordinals, or digital text records, have gained popularity recently. This resulted in an increase in the number of related transactions. According to a report by analytics platform Glassnode on April 25, after a brief dip in popularity, the daily number of transactions related to inscriptions saw a sharp increase. The record number was recorded on April 23 - it amounted to 193,000 inscriptions made in one day.

According to a report by Glassnode, around 40% of all Bitcoin transactions that day were linked to inscriptions. The following day recorded around 85,000 inscriptions, making it the third largest day in the history of Bitcoin inscriptions.

It is worth noting that most recorded record inscriptions were textual. Earlier, pictorial inscriptions were more popular. Glassnode notices that the block size proportion related to inscriptions is decreasing. This is due to the greater popularity of text inscriptions, whose data size is much smaller than the data size of picture inscriptions.

As of April 24, a total of 1.52 million Bitcoin Ordinals inscriptions were registered, of which 56% were text inscriptions and 40% were image inscriptions. Other inscriptions included JSON, HTML, PDF and video files. In turn, the total fees for the execution of the inscriptions amounted to 184 BTC, or about $ 5 million.

Technical Market Outlook:

The BTC/USD pair volatility increased significantly during the last few hours, but no major support or resistance level was broken. Any violation of the support level, like a breakout lower in impulsive fashion, will open the road towards the technical support seen at $25,250. The momentum on H4 time frame chart is now strong and positive, so the bulls are trying to retrace as much territory as possible. First target is seen at 38% Fibonacci retracement at $28,529, then 50% retracement seen at $29,013 and finally 61% retracement seen at $29,461.

Weekly Pivot Points:

WR3 - $28,779

WR2 - $28,222

WR1 - $27,931

Weekly Pivot - $27,661

WS1 - $27,272

WS2 - $27,102

WS3 - $26,544

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.