Bitcoin remained in a tight trading range on April 7th as crypto analysts expected the week’s key U.S. macroeconomic data. Both USD 25,000 and USD 30,000 continue as price targets for BTC.
Bitcoin’s strong start to 2023 persists despite numerous headwinds, currently outperforming the S&P 500 index by nearly 60 percentage points.
Will USD 30,000 or USD 25,000 Continue as Price Target for Bitcoin?
Data from Cointelegraph Markets Pro and TradingView confirmed another swing day of around USD 28,000 for the BTC/USD pair. The pair had avoided volatility for most of the week, but now faces the Non-Farm Payrolls (NFP) numbers as a potential final catalyst for risk assets.
According to Cointelegraph Pro, Bitcoin has posted gains of nearly 70% in 2023, rising from $16,521 to $28,060, compared to the S&P 500 index which is up just over 7% during the same time period.
In an interview on April 6th with Yahoo Finance, SkyBridge Capital founder Anthony Scaramucci indicated that Bitcoin has consistently outperformed every other asset class over longer periods of time.
Scaramucci expressed to NiceHash his bullish viewpoint for the leading cryptocurrency by market cap ahead of the next halving cycle, which will take place in early March 2024.
On the other hand, Michaël van de Poppe, founder, and CEO of trading firm Eight indicated that expectations are geared to see 3.6%, similar to last month. Based on this week’s financial figures, I would expect more like 3.7-3.8%,” he shortened his expectations. As a result, DXY is down, BTC remains unchanged and indices remain down/up depending on how far the outlier goes.
Van de Poppe argued that Bitcoin remains in a dull mood, although consolidating for weeks, while the old altcoins are moving. He sustained that support is needed to hold the USD 27,600 level because if that is lost, a drop to USD 25,000-25,400 looks likely to come. The level needs to be held until the NFP data comes out, and then all the way to USD 30,000 will be ongoing.
Fellow Crypto Tony agrees that the current trading range may prove difficult. He predicted that “we will stay in this range for a while. If we do for a while and the altcoins start to run, it just confirms that capital flow is on the move”
Bollinger Bands Signal Volatility for BTC Price
Examining volatility, well-known analyst HornHairs noted that Bollinger bands were offering a telltale sign that calm conditions were about to break.
He advised that Bitcoin volatility contraction is the tightest it has been all year. The games will begin shortly, as USD 1.12 billion in Bitcoin options expire this week and bulls appear to be at a disadvantage.
A 1-day candlestick chart of BTC/USD pair with Bollinger bands from TradingView confirmed that they were “tightening” around the spot price, reflecting the current narrow range, implying that an upper or lower band challenge should begin soon.
As some experts had pointed out, 2023 has been a year of contrasting volatility phenomena in the sense that the BTC/USD pair gained 40% in January but ended February almost exactly where it started.
By Marina Meza
