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Bitcoin fails to hold $40,000 with traders still hoping for a BTC price relief bounce

Bitcoin (BTC) pierced $40,000 at Wall Street’s open on April 26 as its latest recovery rally lasted less than 24 hours.

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

$39,500 eyed as BTC safety net

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling from local highs of $40,800 on April 26.

At the time of writing, volatility was evident as bulls and bears battled around $40,000, a level that had been surpassed with the April 25 surge.

US equities contributed to the return of selling pressure, with the Nasdaq 100 promptly down 1.5% on open and the S&P 500 down almost 1%.

Popular trader Crypto Ed stood the odds of a jump to $39,500 before another rally took the market higher, potentially towards $42,800.

A similar view came from fellow analyst and trader Rekt Capital, who spied support in the underlying Relative Strength Index (RSI) to expect bullish continuation after a potential dip.

“BTC may be going down now, but the red diagonal on the RSI suggests this current rally is not over,” he said tweeted next to a diagram showing the facility.

“$BTC could drop into the red but should enjoy trend continuation after a successful retest.”

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BTC/USD annotated chart with RSI. Source: Rekt Capital/ Twitter

As Cointelegraph reported, RSI has been responsible for various short-term breakouts in BTC/USD over the past few months.

Dogecoin holds profits inspired by Twitter

In altcoins, it was Dogecoin (DOGE) once again to lead the pack, with its recent gains catapulting it back into the top ten cryptocurrencies by market cap.

Related: Dogecoin price risks 40% correction despite Elon Musk Twitter euphoria

Famous as his pet crypto asset, DOGE had benefited as Tesla CEO Elon Musk struck a deal to buy Twitter, and DOGE/USD is up 11% in 24 hours at the time of writing.

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DOGE/USD 1 hour candlestick chart (Binance). Source: TradingView

Also doing well was Terra’s LUNA token, while the largest altcoin Ether (ETH) copied Bitcoin as it failed to find much support at $3,000 this time.

However, on monthly timeframes, ETH/USD still held up, argued Rekt Capital, despite the weakness of the low timeframe.

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.