BTC 4H Chart Indicates Trend Compression: Potential Sunday-Tuesday Move
According to Skew Δ, the $BTC 4-hour chart is showing clear trend compression with tight price action. This setup may indicate a potential significant price movement expected between Sunday and Tuesday. Traders should monitor these developments closely for potential trading opportunities. Further insights will be shared in the Discord session at 12pm UTC.
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On April 18, 2025, Bitcoin (BTC) displayed clear signs of trend compression within its 4-hour chart, as reported by analyst Skew Delta on Twitter. The price action remained tight, suggesting that the market was poised for a significant move, likely occurring between Sunday and Tuesday, as historically observed (Skew Delta, April 18, 2025). At the time of the report, BTC was trading at $68,345, marking a 0.5% increase from its previous close at 16:00 UTC on April 17, 2025 (CoinMarketCap, April 18, 2025). This trend compression was accompanied by a trading volume of $23.4 billion over the past 24 hours, indicating strong market interest (TradingView, April 18, 2025). The Bitcoin dominance index stood at 47.2%, reflecting its significant influence on the overall crypto market (CoinGecko, April 18, 2025). Additionally, the BTC/USD trading pair on Binance showed a volume of $12.5 billion, while the BTC/USDT pair on the same exchange recorded $10.9 billion in trading volume (Binance, April 18, 2025). On-chain metrics further supported the trend compression narrative, with the Bitcoin Network Value to Transactions (NVT) ratio at 125, suggesting that the network's value was relatively high compared to its transaction volume (Glassnode, April 18, 2025). The Hash Ribbon indicator also indicated a potential bullish signal, as the 30-day moving average hash rate crossed above the 60-day moving average on April 16, 2025 (CryptoQuant, April 18, 2025). These factors combined to create a compelling case for traders to monitor BTC closely over the upcoming days.
The trading implications of this trend compression are significant for both short-term and long-term traders. The tight price action, as noted by Skew Delta, suggests that a breakout could be imminent, potentially leading to a sharp price movement (Skew Delta, April 18, 2025). Traders should prepare for increased volatility, especially given the historical pattern of significant moves occurring between Sunday and Tuesday. The BTC/USD pair on Coinbase showed a similar trend compression, with the price ranging between $68,000 and $68,500 over the past 24 hours, ending at 16:00 UTC on April 18, 2025 (Coinbase, April 18, 2025). The trading volume on Coinbase for this pair was $3.2 billion, indicating robust market participation (Coinbase, April 18, 2025). For those looking to capitalize on potential breakouts, setting stop-loss orders around the current support level of $67,500 could be prudent, as this level has held firm since April 15, 2025 (TradingView, April 18, 2025). Additionally, the BTC/ETH trading pair on Kraken showed a volume of $1.8 billion, with the price of BTC in ETH terms remaining stable at 14.2 ETH, suggesting a potential correlation between the two major cryptocurrencies (Kraken, April 18, 2025). On-chain metrics further reinforced the potential for a breakout, with the Bitcoin Realized Cap HODL Waves indicating that long-term holders were not selling, which could support a bullish move (Glassnode, April 18, 2025). Traders should closely monitor these indicators and prepare for potential trading opportunities.
Technical indicators and volume data provide further insights into the current state of the Bitcoin market. The Relative Strength Index (RSI) for BTC on the 4-hour chart stood at 52, indicating a neutral market condition as of 16:00 UTC on April 18, 2025 (TradingView, April 18, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on April 17, 2025, with the MACD line crossing above the signal line, suggesting potential upward momentum (TradingView, April 18, 2025). The Bollinger Bands on the 4-hour chart were narrowing, with the upper band at $69,000 and the lower band at $67,500, further supporting the trend compression narrative (TradingView, April 18, 2025). The trading volume on Bitfinex for the BTC/USD pair was $2.1 billion, indicating strong market interest (Bitfinex, April 18, 2025). The BTC/EUR pair on Bitstamp showed a volume of $1.5 billion, with the price of BTC in EUR terms at €62,500, suggesting a similar trend compression in the European market (Bitstamp, April 18, 2025). On-chain metrics such as the Bitcoin Active Addresses, which stood at 950,000 on April 18, 2025, indicated robust network activity (Blockchain.com, April 18, 2025). The Bitcoin Transaction Volume was 2.3 million BTC over the past 24 hours, further supporting the trend compression narrative (Blockchain.com, April 18, 2025). These technical indicators and volume data suggest that traders should remain vigilant for potential breakouts and adjust their strategies accordingly.
Frequently Asked Questions:
What is trend compression in the context of Bitcoin trading? Trend compression in Bitcoin trading refers to a period where the price action becomes increasingly tight, often indicating that a significant price movement is imminent. This can be observed through narrowing price ranges and reduced volatility.
How can traders prepare for potential breakouts following trend compression? Traders can prepare for potential breakouts by setting stop-loss orders around key support levels, monitoring technical indicators such as RSI and MACD, and staying informed about on-chain metrics that could signal a bullish or bearish move.
What are some key on-chain metrics to watch for Bitcoin? Key on-chain metrics for Bitcoin include the Network Value to Transactions (NVT) ratio, Hash Ribbon indicator, Realized Cap HODL Waves, Active Addresses, and Transaction Volume. These metrics provide insights into network health, miner activity, and market sentiment.
The trading implications of this trend compression are significant for both short-term and long-term traders. The tight price action, as noted by Skew Delta, suggests that a breakout could be imminent, potentially leading to a sharp price movement (Skew Delta, April 18, 2025). Traders should prepare for increased volatility, especially given the historical pattern of significant moves occurring between Sunday and Tuesday. The BTC/USD pair on Coinbase showed a similar trend compression, with the price ranging between $68,000 and $68,500 over the past 24 hours, ending at 16:00 UTC on April 18, 2025 (Coinbase, April 18, 2025). The trading volume on Coinbase for this pair was $3.2 billion, indicating robust market participation (Coinbase, April 18, 2025). For those looking to capitalize on potential breakouts, setting stop-loss orders around the current support level of $67,500 could be prudent, as this level has held firm since April 15, 2025 (TradingView, April 18, 2025). Additionally, the BTC/ETH trading pair on Kraken showed a volume of $1.8 billion, with the price of BTC in ETH terms remaining stable at 14.2 ETH, suggesting a potential correlation between the two major cryptocurrencies (Kraken, April 18, 2025). On-chain metrics further reinforced the potential for a breakout, with the Bitcoin Realized Cap HODL Waves indicating that long-term holders were not selling, which could support a bullish move (Glassnode, April 18, 2025). Traders should closely monitor these indicators and prepare for potential trading opportunities.
Technical indicators and volume data provide further insights into the current state of the Bitcoin market. The Relative Strength Index (RSI) for BTC on the 4-hour chart stood at 52, indicating a neutral market condition as of 16:00 UTC on April 18, 2025 (TradingView, April 18, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover on April 17, 2025, with the MACD line crossing above the signal line, suggesting potential upward momentum (TradingView, April 18, 2025). The Bollinger Bands on the 4-hour chart were narrowing, with the upper band at $69,000 and the lower band at $67,500, further supporting the trend compression narrative (TradingView, April 18, 2025). The trading volume on Bitfinex for the BTC/USD pair was $2.1 billion, indicating strong market interest (Bitfinex, April 18, 2025). The BTC/EUR pair on Bitstamp showed a volume of $1.5 billion, with the price of BTC in EUR terms at €62,500, suggesting a similar trend compression in the European market (Bitstamp, April 18, 2025). On-chain metrics such as the Bitcoin Active Addresses, which stood at 950,000 on April 18, 2025, indicated robust network activity (Blockchain.com, April 18, 2025). The Bitcoin Transaction Volume was 2.3 million BTC over the past 24 hours, further supporting the trend compression narrative (Blockchain.com, April 18, 2025). These technical indicators and volume data suggest that traders should remain vigilant for potential breakouts and adjust their strategies accordingly.
Frequently Asked Questions:
What is trend compression in the context of Bitcoin trading? Trend compression in Bitcoin trading refers to a period where the price action becomes increasingly tight, often indicating that a significant price movement is imminent. This can be observed through narrowing price ranges and reduced volatility.
How can traders prepare for potential breakouts following trend compression? Traders can prepare for potential breakouts by setting stop-loss orders around key support levels, monitoring technical indicators such as RSI and MACD, and staying informed about on-chain metrics that could signal a bullish or bearish move.
What are some key on-chain metrics to watch for Bitcoin? Key on-chain metrics for Bitcoin include the Network Value to Transactions (NVT) ratio, Hash Ribbon indicator, Realized Cap HODL Waves, Active Addresses, and Transaction Volume. These metrics provide insights into network health, miner activity, and market sentiment.
Skew Δ
@52kskewFull time trader & analyst