In mid-April, bitcoin broke above the $31,000 point for the first time in ten months. This increase in bullish sentiment comes as global inflation continues to fall, with many expecting central banks to change from current tightening policies soon.
Current state of the market
April started mostly with consolidation, as traders continued to digest last month’s banking collapse and the Federal Reserve’s 25 basis point rate hike.
However, following the non-farm payrolls report, which fell to 236,000 in March, down from 326,000 the previous month, bulls began to re-enter the market.
Since then, inflation data has also been released, and consumer prices in China fell to an eighteen-month low, sending Bitcoin back above $30,000.
In the United States, prices are also down, falling to 5% in March, with retail sales also down.
April outlook
So far, these factors have helped Bitcoin and led to prices breaking above $31,000 for the first time since last June.
During last month’s outlook, BTC was trading at a low of $19,628.25 on March 10 and, at the time of writing, BTC/USD has now moved to a high of $31,005.61 today.
One of the catalysts for this move was a breakout, which took place in the 14-day RSI.
Bulls broke above a ceiling at the 68.00 mark, moving deep into overbought territory, reaching a peak at 72.44.
In January, the index rallied to a high of 89.00, which means that despite the overbought, there could still be some further gains as the month progresses.
However, if the RSI falls below its previously mentioned support at 68.00, the bears could start to reappear.
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Where will the bitcoin month end? Let us know your thoughts in the comments.
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