The long-term outlook for Bitcoin price is decidedly optimistic, but the short-term trend is still unclear. Daily time frame readings for Bitcoin price give mixed signals. On the optimistic side, the price broke out of the $24,800 resistance area. In addition, the daily RSI (Relative Strength Index) broke its bearish divergence trend line and validated it as support. However, the price also created a double top pattern combined with long upper wicks.
This was coupled with a new falling divergence on the RSI. Therefore, the contradictory signs do not make it clear whether the BTC price will rise to the next resistance at $31,800 or fall to the $24,800 support area. It is important mentioning that a negative newscast for Bitcoin occurred on April 4th related to the approval “House Bill 1751” by Texas lawmakers which greatly restricts Bitcoin mining operations.
Bitcoin’s Weekly Price Projection Remains on the Rise
While daily time frame technical analysis does not confirm the trend course, a weekly viewpoint is decidedly optimistic. BTC’s price broke a long-term descending resistance line that had existed since the all-time high. It was validated during the 6 to 13 March week, creating a long lower position and a strong overwhelming rise the following week. An outstanding feature regarding the BTC price crusade has to do with the weekly RSI (Relative Strength Index) moving above 50 for the first time since June 2021.
As a result, the weekly time frame indicates that the price is expected to move toward its long-term resistance at $31,500, which aligns with the shorter-term one at $31,800.
On the other hand, a weekly close below $24,600 would invalidate this rising forecast. If that happens, the BTC price could fall to $20,000.
Bitcoin Price Forecast for April: Rally or Improvement?
Bitcoin’s price prediction for April is still doubtful. The main reasons for this are the wave count and the bearish divergence described in the Relative Strength Index. The wave count has shown that the BTC price has completed a five-wave upward move. In it, the fifth wave has extended, reaching the same length as waves one and three combined. If the upward move is complete, a significant correction will soon follow.
The aforementioned is also supported by the bearish divergence on the 12-hour RSI. In this case, the BTC price could fall to the Fibonacci retracement support level of 0.382 at $24.065, very close to the long-term support area.
However, if the daily RSI (Relative Strength Index) breaks its bearish divergence trend line it will imply a possible generation of a price pump. Taking this into account the bearish Bitcoin price prediction for April will be invalidated, giving space for catalyzing a rally toward $32,000.
In concluding remarks, it is necessary to highlight that while most long-term Bitcoin price forecasts are on the rise, the short-term one has yet to be decided.
Focusing on BTC price behavior in the last weeks, there is no certainty on whether it will be capable of creating a new weekly high or will stay amount the current level, keeping pace and being aware of the Relative Strength Index unpredictable divergence that is the determining force and direction for any near-term move.
By Marina Meza
