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Bitcoin “buy” signal is exciting as the dollar and gold extend losses and BTC price surges above $41.5K

Bitcoin (BTC) closed above a crucial level until April 20 when the daily chart offered a long-awaited “buy” signal.

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BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Trader: Bitcoin is a buy at $41,500

Data from Cointelegraph Markets Pro and TradingView confirmed a Tuesday daily close for Bitstamp at $41,500.

A strong performance, the sustained gains meant a new uptrend should materialize, according to a trader tracking a daily timeframe buy/sell indicator.

The macro atmosphere was also in Bitcoin’s favor the day after the US dollar encountered resistance in its own bull run.

The US Dollar Currency Index (DXY) turned back after hitting 101 on Tuesday, its highest level since April 2020.

“DXY correction as expected fueling BTC upleg,” popular trader Crypto Ed answered.

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US Dollar Currency Index (DXY) 1 hour candlestick chart. Source: TradingView

Gold also struggled with teething problems, losing 2.6% from its highs of $1,998 earlier in the week.

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XAU/USD 1 hour candlestick chart. Source: TradingView

However, BTC price action remained near the daily close as fellow trader and analyst Rekt Capital predicted incoming turbulence for longer periods.

“Bollinger Bands attract the price,” he told Twitter followers referencing the Bollinger Bands volatility indicator on the weekly chart.

“This signals increasing price compression that usually precedes strong volatility.”

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BTC/USD 1-week candlestick chart (Bitstamp) with Bollinger Bands. Source: TradingView

No shortage of buy the dip signals on the chain

On-chain metrics were also positive on the day, with multiple reports by Cointelegraph continuing to suggest that a bottom formation was already complete.

Related: Bitcoin Hodlers Targeting $100,000 Prevent a 40% Price Drop, Data Suggests

Among them was Bitcoin’s reserve-risk chart, which is now firmly in its starting zone, which historically has prevented bullish markets from starting.

When it first returned to the target zone, analyst Philip Swift described it as “btfd territory.”

Formally, those who bought BTC at current reserve risk levels had a better chance of locking in “outsized” returns over the long term.

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Bitcoin Reserve Risk Chart. Source: Glassnode

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.