<p>The momentum indicator Bitcoin traders have been anticipating is now in play
Key takeaways for April 22, 2026
Essential details:
— Bitcoin surged past the $78,000 mark following weeks of sideways movement, driven by renewed risk appetite after President Donald Trump prolonged the ceasefire agreement with Iran.
— Onchain metrics reveal that Bitcoin holdings on centralized exchanges have fallen to multi-year lows, indicating that investors are retaining their BTC and potentially setting the stage for a supply squeeze.
— Although Bitcoin has regained positions above its 100-day moving average and momentum traders are re-entering the market, firms like QCP Capital are advising caution.
Bitcoin
The digital asset’s rally concluded weeks of volatile trading within the $65,000 to $75,000 range that characterized March and early April, ultimately providing momentum traders with the confirmation they sought.
Momentum traders enter positions when they observe evidence of an upward trend. Bitcoin’s breakout exemplifies this, potentially attracting additional buyers and amplifying the upward pressure. As Newton’s first law of motion states: An object in motion remains in motion unless acted upon by an external force, though Sir Isaac Newton likely did not have financial markets in mind when he formulated this principle.
«The market spent months confined within the 65 to 75 range. Escaping this consolidation zone is significant because it alters market dynamics. Sellers who were comfortable shorting rallies above $74 must now reconsider their strategies. Momentum buyers who were seeking confirmation finally have a basis for action,» analysts at Marex noted.
Onchain metrics corroborate this view. For example, the volume of coins held in wallets linked to centralized exchanges has plummeted to a new multi-year low of 2.67 million BTC, according to data provider CryptoQuant. This trend suggests ongoing investor accumulation, which could lead to a supply shock.
«Bitcoin exchange reserves continue to contract, with fewer coins available for sale, more BTC shifting to long-term holders, and liquidity tightening. Bitcoin is growing scarcer – reduced supply implies increased volatility,» Delta Exchange stated on X.
Nevertheless, QCP Capital is urging prudence, highlighting the persistent relative expensiveness of Bitcoin put options on Deribit. Puts serve as hedges against potential price declines in the underlying asset. The firm also noted that crypto trends currently appear correlated with oil prices and interest rate expectations.
«The trajectory remains linked to oil and policy. A decline in crude prices or clearer Federal Reserve guidance would bolster risk assets. Without these factors, markets are likely to remain in a holding pattern, pricing in uncertainty rather than resolution,» the Singapore-based firm stated in a market update.
In traditional markets, WTI crude futures are trading near $90, having rebounded from a Friday low of $78.
In the broader crypto landscape, DeFi security risks persist as hacks continue to occur. Early today, the Sui-based Volo protocol was drained of over $3 million, just days after the KelpDAO incident that caused widespread collateral damage across the sector. Stay vigilant!
What’s trending
— Two ships attacked in Strait of Hormuz, UK says, after U.S. extends Iran ceasefire (Decryptnews): Two cargo ships were attacked in the Strait of Hormuz Wednesday, after the U.S. extended the ceasefire and as diplomats seek to bring the U.S. and Iran together for peace talks.
— Flight to safety: How Maker’s Spark and USDC are winning the $10 billion Aave breakup (Decryptnews): Aave’s TVL is down by about 40%. Some of that capital moved into Maker-linked Spark, which has emerged as the clearest relative winner. Others migrated to Lido and Centrifuge.
— Another DeFi protocol loses millions in hack days after KelpDAO breach (Decryptnews): Volo Protocol was exploited, losing about $3.5 million from three vaults holding WBTC, XAUm, and USDC.
This is an excerpt from Decryptnews newsletter ‘Daybook.’ Sign up here, if you haven’t already.
Today’s signal
The chart shows bitcoin’s daily price movements in candlestick format, with lines indicating the 100-day and 200-day average prices.
BTC’s price has established a firm foothold above the 100-day average, represented by the white line. This is pivotal because the 100-day average capped the bounce in January, following which sellers re-established control, leading to a deeper crash to nearly $60,000.
Now the price has pierced through, which typically signals a strengthening of bullish momentum, focus shifts to the 200-day average, currently positioned at $85,900.