Bitcoin (BTC) fell below $29,000 until April 20 as bulls faced a battle for ground reclaimed in March.
Will $30,000 Become Bitcoin’s Ultimate “Bart Simpson”?
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was heading for $28,800 on Bitstamp.
Previous wicks below $28,600 were quickly bought, but Bitcoin still threatened to turn $29,000 into resistance on the day as traders eyed a crucial support zone.
In support now, I’m busting long as we stay above the lows at $28,550 on a 4-hour close.
We’ll see how this plays out today. pic.twitter.com/qsjmVn2kb9
— Crypto Tony (@CryptoTony__) April 20, 2023
“While the Bitcoin market is correcting, we still have the average transactor taking profits,” Checkmate, Lead On-Chain Analyst at Glassnode, wrote in part from Twitter analysis.
“To me, this indicates that chips are still being chipped off the table, and we don’t have a full flow of major buyers yet (like March).”
Checkmate added that it was waiting for realized losses to take over as a sign of “panic” from those who bought BTC when it topped $30,000 this month.
An accompanying graph showed the rate of profit on adjusted expended production (aSOPR), which captures the aggregate gains and losses of on-chain transactions.
A few more bullish takes remained, with analyst Matthew Hyland noting one-month lows on Bitcoin’s RSI on daily time frames.
The RSI provides an idea of how overbought or oversold BTC/USD is at a given price level, and while still relatively high, such a reset and subsequent reversal may indicate an incoming uptrend.
#Bitcoin Daily RSI now at lowest point since BTC closed at $24,200 over a month ago pic.twitter.com/JjGd7IqVJ5
— Matthew Hyland (@MatthewHyland_) April 19, 2023
Elsewhere, popular trader and analyst Jelle continued notice a BTC/USD mimic formation, which perfectly tracked a 2020 price fractal.
Ultimately, this produced a pattern called “Bart Simpson”: a higher spike, followed by a plateau and subsequent pullback, only to then break even higher later.
“$28,800 acting as a fund so far. If we can hold out here for the next week or so, I see us going over $30,000 soon after,” Jelle predicted.
BTC price returns to the “logical place”
With volatility returning to BTC/USD in recent days, John Bollinger, creator of the Bollinger Bands volatility indicator, urged caution.
Related: Is Bitcoin Overbought or Oversold? Use Bollinger Bands to find out!
Bitcoin, he noted that day, had moved away from its upper Bollinger band, giving up a breakout beyond it.
“Bitcoin has just pulled back to its mid Bollinger Band and its previous breakout level. We call this a logical place. Time to pay attention!” he tweeted.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
