The price of Bitcoin (BTC) reached a peak of $63,000 just before the stock market opened on April 18, thanks to a slight improvement in Bitcoin’s pricing that put traders in a more optimistic frame of mind.
Analysis: BTC price lows may be “tricking” investors
The prices of Bitcoin against the US Dollar, as indicated by data from CryptoMoon Markets Pro and TradingView, hit a high of $63,095 on Bitstamp. This represents a 5.5% increase compared to the previous day’s minimum.
At $59,700, these represented Bitcoin’s lowest levels since early March.
Some forecasters predicted that selling off assets was necessary at $57,000, with prices potentially dropping even further. However, others expressed cautious optimism.
Rekt Capital, a well-known trader and analyst, affirmed that the BTC/USD pair was currently in a “consolidation phase,” during which its price movements reflected this status.
“When studying Bitcoin’s Re-Accumulation Ranges during this cycle, it’s important to keep in mind that: Prices often dip below the Range Low to deceive investors into believing a market downturn (as indicated by the black circles), but ultimately lead to an uptrend continuation.”
At various stages of the 2022 Bitcoin bear market, as depicted in the graph, there were comparable price declines. Following each low point, the price rebounded with substantial and lasting improvements.
Eyeing on-chain signals, fellow trader Jelle drew similar conclusions about what lay ahead.
“Bitcoin recently hit a significant mark, touching both its 3-day RSI 50 level and 3-day 33 EMA,” he shared with his audience, explaining that the Relative Strength Index (RSI) and the 33-period Exponential Moving Average (EMA) on the 3-day chart had been reached simultaneously.
“The last time this happened was at $38,000, earlier this year. Pretty sure the result will be similar: higher prices.”
Altcoins battle brutal downtrend
Michaël van de Poppe, the founder and CEO of MNTrading, anticipates that Bitcoin’s price will keep moving sideways following the upcoming block reward reduction.
In simpler terms, altcoins, which are digital currencies other than Bitcoin, experienced significant losses during the recent cryptocurrency market downturn. It’s possible that the majority of these price declines have already occurred.
“The period of boredom for Bitcoin, which is eager to consolidate here,” he explained.
“Overall, I’m expecting this won’t change for the coming months, but I think we’re at the altcoin bottom.”
Van de Poppe identified approximately $52,000 and $45,000 as possible price levels for a more significant market downturn.
At the moment of composition, the combined value of all altcoins amounted to approximately $256.7 billion. This represents a nearly 17% increase from their two-month lows on April 13. However, they continue to face difficulty in overcoming a persistent downtrend.
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2024-04-18 15:56