Business

Bitcoin reopens annually as trader says $50k ‘may be likely’ next week

Bitcoin (BTC) consolidated above the 2022 year open on April 2 after bulls briefly reclaimed $47,000 on a return to form.

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

BTC price offers “crucial” long-term support

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling around $46,600 on Saturday after a sharp recovery from long-term support.

The pair had fallen to lows of around $44,300 on Friday, but those were short-lived as positive sentiment took control of Wall Street’s open.

For Cointelegraph contributor Michaël van de Poppe, who intended to keep the newly flipped support, the odds were good for an attack on $50,000.

“Key area held for bitcoin where continuation upside looks likely,” he said summarized to the Twitter followers that day.

“If we revisit the $45,000 area I think that is a sign of weakness and we will go into the $40,000 area. If we don’t do that, $50,000 could be likely next week.”

blank
Annotated BTC/USD chart. Source: Michael van de Poppe/Twitter

PlanB, the analyst behind popular stock-to-flow-based Bitcoin price models, meanwhile, noted continued strength in Bitcoin’s Relative Strength Index (RSI).

As Cointelegraph reported, the RSI’s bullish performance over the past few weeks has been accompanied by price pressures.

The reserve risk metric remains in the “excessive” yield zone

During March, meanwhile, an on-chain metric began providing increasingly stronger buy signals for BTC/USD.

See Also: “Hold My Beer” – Terra Has Already Gained $165M From Buying Bitcoin As BTC Supply Closes To Tesla’s

Reserve risk, which provides a guide to when to invest to guarantee long-term “inflated” returns, stayed within its target zone this weekend after more than four weeks.

While Reserve Risk showed signs of an uptrend, it indicated that recent price increases on higher timeframes were not the end of the story.

blank
Bitcoin Reserve Risk Chart. Source: LookIntoBitcoin

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.