All that stands in the way of Bitcoin’s next milestone is a new plunge below $45,000.
On April 2, Bitcoin (BTC) consolidated above the yearly open of 2022 after a brief return to form saw bulls recoup $47,000.
Long-term support for the Bitcoin price is “crucial.”
BTC/USD was circling $46,600 on Saturday, according to data fromTradingView, after a clear bounce at long-term support.
The pair had fallen to lows of approximately $44,300 on Friday, but these were short-lived as optimistic mood dominated the Wall Street open.
With the intention to keep freshly flipped support confirmed, contributor Michal van de Poppe was betting on an attack on $50,000.
On the day, he summarised to Twitter followers, “Crucial area held up for Bitcoin, in which continuing upwards seems plausible.”
“If we return to the $45k range, I believe it will be a sign of weakness, and we will move to the $40k range. If we don’t, $50k next week is a possibility.”
Meanwhile, PlanB, the analyst behind the popular stock-to-flow based Bitcoin price models, highlighted that Bitcoin’s relative strength index has remained strong (RSI).
— PlanB (@100trillionUSD) April 2, 2022
Bullish RSI performance has accompanied price squeezes in recent weeks.
Reserve The risk metric remains in the “excessive” returns zone
Meanwhile, over the course of March, one on-chain indicator began to generate more strong buy signals for BTC/USD.
After more than four weeks, Reserve Risk, which indicates when to invest to ensure “outsized” returns over time, stayed in its target zone this weekend.
Reserve Risk warned that the current price gains were not the end of the tale on longer timescales, albeit displaying symptoms of going up.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.