Bitcoin (BTC) barely held $27,000 on April 22 as another round of losses left bulls with little firepower.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Giant RSI support retest greets Bitcoin bulls
BTC/USD was just above $27,000 on the day after the Wall Street trading week ended on a sour note, according to data from Cointelegraph Markets Pro and TradingView.
In contrast to US equities, which managed to post modest gains on the day, Bitcoin continued to fall as analysts predicted a return to around $25,000.
According to Coinglass data, BTC/USD was down 10% for the week and 4% in April overall, indicating a dramatic turnaround in fortunes compared to much of Q1.
Bitcoin monthly returns chart (screenshot). Source: Coinglass
However, popular trader Credible Crypto had reason to believe that the long-term uptrend would continue.
“If your macro thesis on Bitcoin has changed as a result of a $2,000 pullback after a $10,000 vertical rally from 19k to 30k, you’re doing it wrong,” he insisted in a recent Twitter rant.
An additional post claimed that such price movement was “common” in cryptocurrency markets.
“Our last major retest occurred at 19k prior to our rally to 30k. “A 25k retest here would be logical and healthy,” it said.
BTC/USD annotated chart. Source: Credible Crypto/Twitter
Stockmoney Lizards, a financial information resource, agreed, telling Twitter followers that the road to success would be slow and steady.
“After these huge green candles, we usually find some cooldown,” it wrote about the 3-month BTC/USD chart.
“Short-/mid-term still bullish (3 months), but don’t expect it to go too fast.”
Crypto analyst CryptoCon reached similar conclusions based on the most recent changes in Bitcoin’s relative strength index (RSI).
RSI, which is used to determine overbought and oversold conditions at specific price points, can provide insight into future price trends.
Short-term Bitcoin price action appears bleak, but the Weekly RSI has broken out of a 6-year downtrend and is now attempting to make support, it revealed, comparing the latest action to previous halving cycles.
Bitcoin is now at decision point. Continue 2019 parabolic price action, or take the healthier, steady 2015 approach?
BTC/USD annotated chart with RSI. Source: CryptoCon/ Twitter
BTC price analyst expects stronger buy interest near $25,000
Meanwhile, Trader Skew investigated potential near-term price targets for BTC/USD, focusing on moving averages (MAs).
The zone north of $25,000 remained the main focus, with the 200-week MA sitting at $25,850.
$BTC 1D
Failed breakout above 1D resistance $30KWill be interesting if price retests $25K & 1W Trend MAs
I’d expect a stronger buy interest around there as it’s closest to invalidation there before HTF demand around $19K pic.twitter.com/D5eP9ujyHh
— Skew Δ (@52kskew) April 22, 2023
Market composition remained likely to liquidate traders, with Coinglass data showing that crypto longs lost another $173 million on April 22.
According to Cointelegraph, April 19 saw the most long liquidations of 2023 thus far.
This article provides no investment advice or recommendations. Every investment and trading decision entails risk, and readers should conduct their own research before making a decision.
