Bitcoin traders call for calm as BTC price slips 10% in a week

Bitcoin traders call for calm as BTC price slips 10% in a week


Bitcoin (BTC) barely held $27,000 on April 22 as another round of losses left bulls with little firepower.

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

Giant RSI support retest greets Bitcoin bulls

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD barely preserving the $27,000 mark on April 22 after the Wall Street trading week ended on a sour note.

In contrast to United States equities, which managed to seal modest gains on April 22, Bitcoin continued to suffer as analysts warned of a return toward $25,000.

With that, BTC/USD was down 10% for the week and 4% in April overall, according to data from monitoring resource Coinglass, amid a dramatic turnaround in fortune versus much of Q1.

Tokenmetrics
Bitcoin monthly returns chart (screenshot). Source: Coinglass

For popular trader Credible Crypto, however, there was still every reason to hope that the long-term uptrend remained intact.

“If your macro thesis on Bitcoin has changed because of a $2,000 pullback after a $10,000+ vertical rally from 19k to 30k+ you’re doing it wrong,” he insisted in part of his latest Twitter commentary.

In an additional post, he argued that such price action is “common” in crypto markets.

“The last major retest we had was at 19k before our rally to 30k+. A retest of 25k here would be logical and healthy,” he stated.

BTC/USD annotated chart. Source: Credible Crypto/Twitter

Financial information resource Stockmoney Lizards agreed, telling Twitter followers that the road higher may be slow and steady.

“After these huge green candles, we usually find some cooldown,” it wrote regarding the three-month BTC/USD chart.

“Short-/mid-term still bullish (3 months), but don’t expect it to go too fast.”

Crypto analyst CryptoCon delivered similar conclusions on the basis of the latest movements in Bitcoin’s relative strength index (RSI).

Used to determine overbought and oversold conditions at given price points, the RSI can help offer insights into forthcoming price trends.

“Short term #Bitcoin price action seems grim, but behind the scenes, the Weekly RSI has broken out of a 6-year downtrend and is now attempting to make support,” CryptoCon revealed, comparing the latest action to prior halving cycles. 

“Bitcoin is now at decision point. Continue 2019 parabolic price action, or take the healthier, steady 2015 approach?”

BTC/USD annotated chart with RSI. Source: CryptoCon/Twitter

BTC price analyst expects “stronger buy interest” near $25,000

Trader Skew, meanwhile, delved into the potential near-term price targets for BTC/USD, focusing on moving averages (MAs).

Related: Forget BTC price: The Bitcoin mining boom is quietly going parabolic

The zone north of $25,000 remained the principal point of interest, with the 200-week MA residing at $25,850.

The market composition remained apt to liquidate traders, with Coinglass data showing April 22 costing crypto longs another $173 million.

As Cointelegraph reported, April 19 saw the largest amount of long liquidations of 2023 so far.

Crypto liquidations chart. Source: Coinglass

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest