Bitcoin (BTC) is poised for a relief bounce but still risks falling to $30,000 before May, new analysis warned on April 18.
$30,000 dive is April ‘risk’
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD fluctuating near $39,000 on Monday as bearish views for the pair increased.
After losing support of $40,000 overnight to Monday, bitcoin faced thin liquidity thanks to the Easter weekend amid lack of stock trading in the United States and Europe.
For popular trader Crypto Ed, a short-term pullback should bottom at $37,500 before a recovery begins.
“First, $40,000 must be recovered; if we can do that, it will certainly give the market a bullish momentum,” he said in his latest YouTube update.
Should that happen, $43,000 could be the local high, but the picture looks bleak going forward. Using Elliott Wave analysis, Crypto Ed forecast a repeat of the recent downmoves interspersed with a brief bounce of recovery. The goal, he concluded, was $30,000.
“That’s the risk for the next two weeks, say,” he added.
The popular Bitcoin Jack Twitter account also called for the coming weeks to serve as a moment of reckoning for longer-term price action.
Room for a squeeze up, but then going down to the monthly level in time is my reasoning
I’m guessing early May to determine the main trend towards Daylight Saving Time pic.twitter.com/Zo8hARsyo8
— //Bitcoin ack (@BTC_JackSparrow) April 18, 2022
$30,000 as a target for May or June is nothing new, as Cointelegraph previously reported.
Gold strikes as crypto correlation wanes
Despite bitcoin coming under pressure, there was no sense of pain for safe-haven gold on Monday.
Related: US Dollar’s Strength Mimics 2020’s Coronavirus Crash – 5 Things to Know in Bitcoin This Week
After last week’s surge, XAU/USD rallied back to $2,000 and got as close as $2 to the resistance level before retreating to around $1,990.
Nonetheless, the pair traded at its highest level since March 11, rivaling US dollar strength.
“A 50-day correlation coefficient for bitcoin and gold is around minus 0.4, the lowest since 2018,” according to journalist Colin Wu written down about the effects of the different price developments of gold and bitcoin.
“Right now, bitcoin remains closely correlated with the Nasdaq 100 index. The Nasdaq 100 is down about 15% this year while Bitcoin is down about 16%.”
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https://cointelegraph.com/news/btc-could-drop-to-30k-in-2-weeks-trader-warns-as-gold-goes-for-2k-high BTC could fall to $30,000 in 2 weeks, trader warns, as gold surges to $2,000