Commentaries state that Bitcoin is experiencing a “logical and healthy” correction and that USD 25,000 is now a key price line for BTC.
Bitcoin just held USD 27,000 on April 22nd, as another round of losses left bulls with little firepower; this is shown on a 1-hour candlestick chart for the BTC/USD (Bitstamp) pair published by TradingView.
Bitcoin Bulls Retest Giant RSI Support
Information from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair barely preserved the USD 27,000 mark the day after Wall Street’s stock market week ended on a sour note.
In contrast to US equities, which managed to seal modest gains on the day, Bitcoin continued to suffer as analysts warned of a return to nearly USD 25,000.
Thus, the BTC/USD pair was down 10% on the week and 4% in April, according to Coinglass data, within a dramatic turnaround in fortunes from the first quarter, evidenced by the monthly Bitcoin return chart published by Coinglass.
However, for popular trader Credible Crypto, there was still plenty of reason to expect the long-term uptrend to remain intact.
He insisted in part of his latest Twitter commentary that “If your macro thesis on Bitcoin has changed due to a USD 2,000 pullback after a USD 10,000+ vertical rally from 19k to 30k+ you’re doing it wrong.”
In an additional post, he argued that such price action was “common” in cryptocurrency markets.
“The last major retest was at 19k before our rally to 30k+. A 25k retest here would be logical and healthy,” he stated, according to an annotated BTC/USD chart on his Credible Cryptocurrency Twitter account.
Cryptocurrency analyst CryptoCon brought similar conclusions based on recent moves in Bitcoin’s relative strength index (RSI).
He indicated that the RSI has been used to determine overbought and oversold conditions at certain price points, so it can help offer insights into upcoming price trends.
On the other hand, he revealed that comparing the latest action to previous halving cycles, “Bitcoin’s short-term price action looks grim, but in the background, the weekly RSI has broken a 6-year downtrend and is now trying to make support.”
He pointed out that Bitcoin is now at the decision point and posed the following question: should Bitcoin continue the 2019 parabolic price action or take 2015 healthier, steadier approach?, this can be observed in the annotated BTC/USD chart with RSI posted by CryptoCon on his Twitter account
BTC Price Analyst Expects “Stronger Buying Interest” near USD 25,000
Meanwhile, trader Skew delved into possible short-term price targets for BTC/USD, focusing on the moving averages (MA).
The area north of USD 25,000 remained the main point of interest, with the 200-week MA residing at USD 25,850.
The market composition remained apt for liquidating traders, according to data provided by Coinglass, April 22 cost another USD 173 million long cryptocurrencies.
As reported by Cointelegraph, April 19 had seen the highest amount of long settlements of 2023 so far, which can be seen in the cryptocurrency settlements chart published by Coinglass.
By Marina Meza
