Bitcoin (BTC), which is a historically significant price point for hodlers sits at, but where can it go in the next days?
Traders are laying out their options as the monthly close approaches and countries prepare for May holidays.
Key focus: $35,000
Although Bitcoin market commentators are not always in agreement on everything, there is one thing that is more or less agreed upon this week: April’s monthly close will likely be volatile.
This volatility can be exacerbated by the lack of trading volume due to markets being closed for long weekends or the weekend.
However, even with macro participation, the situation does not favor Bitcoin bulls. Cointelegraph reported that major indices (with the notable exception of China) finished Friday in the red.
Cryptotoad, a popular Twitter trader, summarized the latest update as follows: “Nothing bullish regarding this candle except that it’s still below monthly support (but that might change today),” he stated.
“Next Monthly Support at $35k”
According to Coinglass data, April has seen 15% losses in BTC/USD so far, making April the most volatile month in Bitcoin’s history.
Screenshot of BTC/USD monthly returns chart Source: Coinglass
BTC/USD has managed to avoid a drop below liquidity of around $37500 so far, but Cryptotoad isn’t the only one suggesting that this could be a near-term chart focus.
Jordan Lindsey founder of JCL Capital trading firm, highlighted $35,000 as one among what he considers to be just two “big technical levels.”
“The two most important levels in Bitcoin are channel support and major technical breakdown. $35k is channel support, and below is major technical break down. Technically, price is bullish since $38k posted on February 4th on this account. It has been neutral since the $53k breakdown. He told his Twitter followers that everything else was noise Friday.
Annotated chart of BTC/USD Source: Jordan Lindsey/Twitter
If that happens, Bitcoin would be not far from the $30,000 worst-case scenario target for last week, which was described as both an “ultimate top” and a level likely to be reached by June.
Spot level retention could lead to “decent relief”.
Credible Crypto, a fellow trader, suggested that Bitcoin is in a better position if it avoids the sub-$37,000 plunge.
Research suggests that the ultimate buy-the–dip opportunity is $27K’max Pain’ Bitcoin price
He tweeted Saturday, “If we can keep here we should be able to see some decent relief,” along with a chart that illustrated the prognosis.
“As per my previous update, I can see valid arguments both ways. However, the wave structure gives the advantage to the bullish scenario.” Easy invalidation at 37.7k. If we hit that, expect a flush to the orange region and 36k.
The BTC/USD trades at $38,600 as of the writing time, approximately 12 hours before the close.
BTC/USD chart annotated. Source: Credible Crypto/ Twittercom. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
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