Turning point for Bitcoin as the current correction changes the nature of the USD 30,000 breakout.
Bitcoin fell below USD 29,000 on April 20 as bulls faced a battle for the ground regained in March, which was reflected in a 1-hour candlestick chart of the BTC/USD pair published by TradingView.
Will USD 30,000 Become the Ultimate “Bart Simpson Chart” for Bitcoin?
According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair was headed for USD 28,800 on Bitstamp. Earlier moves below USD 28,600 were quickly bought, but Bitcoin was still threatening to give turn USD 29,000 resistance into support on the day as traders were eyeing a crucial support zone.
Crypto Tony (@CryptoTony__) posted on April 20, 2023 on his Twitter account a $BTC / $USD update of which he commented as follows: In support now, so I’m trading quickly for a long time as we hold above the lows at $28,550 on a 4-hour close, he emphasized We’ll see how this plays out today….
Checkmate, senior on-chain analyst at Glassnode wrote in part of the Twitter analysis that “Although the Bitcoin market is correcting, we still have the average transactor taking profits.”
He added that “To me, this indicates that tokens are still being taken off the table, and that we still don’t have a full-blown front-end buyer exit (like in March).”
Checkmate pointed out that it was waiting for realized losses to take over as a “panic” signal from those who bought BTC when it crossed USD 30,000 this month.
A chart showed the Adjusted Spent Output Profit Ratio (aSOPR) metric, which captures the aggregate gains and losses from on-chain transactions. Bitcoin aSOPR chart, published by Checkmate on Twitter
Some were more optimistic than others. Analyst Matthew Hyland pointed to one-month lows in Bitcoin’s relative strength index (RSI) on daily time frames.
The RSI gives an idea of how overbought or oversold the BTC/USD pair is at a given price level, and while still relatively high, such a reset and subsequent reversal can signal the start of an uptrend.
Separately, popular trader and analyst “Jelle” continued to observe a copycat formation by the BTC/USD pair, which cleanly followed a price fractal from 2020.
Ultimately, this produced a so-called “Bart Simpson” pattern: a rally to the upside, followed by a plateau and subsequent pullback, only to break higher later.
Jelle predicted that so far, USD 28,800 has served as a bottom. If we hold here for a week or so, I see us breaking above USD 30,000 before long. This can be observed in the BTC/USD pair with the “Bart Simpson” pattern chart, posted by Jelle on his Twitter account.
BTC Price Returns to its Logical Place
With volatility returning to the BTC/USD pair in recent days, John Bollinger, creator of the Bollinger Bands volatility indicator, urged caution.
Bitcoin, he noted on the day, had reversed away from its upper Bollinger band, abandoning a break beyond it.
He tweeted that Bitcoin just reversed back to its middle Bollinger Band and its previous breakout level. We call this a logical place; it is time to pay attention. TradingView published a 1-day candlestick chart of the BTC/USD pair with its Bollinger Bands (Bitstamp).
By Marina Meza
