Decision time for Bitcoin as an ongoing correction changes the nature of the $30,000 breakout.
Bitcoin (BTC) fell below $29,000 into April 20 as bulls faced a battle for ground reclaimed in March.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Will $30,000 become Bitcoin’s latest “Bart Simpson”?
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading to $28,800 on Bitstamp.
Earlier wicks below $28,600 were quickly bought up, but Bitcoin still threatened to flip $29,000 to resistance on the day, as traders eyed a crucial support zone.
On support now, so I am scalping a long while we remain above the lows at $28,550 on a 4 hour closure
Will see how this plays out today pic.twitter.com/qsjmVn2kb9
— Crypto Tony (@CryptoTony__) April 20, 2023
“Whilst the Bitcoin market is correcting, we still have the average transactor taking profits,” Checkmate, lead on-chain analyst at Glassnode, wrote in part of Twitter analysis.
“To me, this indicates that chips are still being taken off the table, and we don’t yet have a flush out of top buyers in full (like March).”
Checkmate added that he was waiting for realized losses to take control as a signal of “panic” by those who bought BTC as it crossed $30,000 this month.
An accompanying chart showed the Adjusted Spent Output Profit Ratio (aSOPR) metric, which captures aggregate profit and loss of on-chain transactions.
Bitcoin aSOPR chart. Source: Checkmate/ Twitter
Some more optimistic takes remained, with analyst Matthew Hyland noting one-month lows in Bitcoin’s relative strength index (RSI) on daily timeframes.
RSI gives an insight into how overbought or oversold BTC/USD is at a given price level, and while still relatively high, such a reset and subsequent reversion can signal an inbound uptrend.
#Bitcoin Daily RSI now at lowest point since BTC closed at $24,200 over a month ago pic.twitter.com/JjGd7IqVJ5
— Matthew Hyland (@MatthewHyland_) April 19, 2023
Elsewhere, popular trader and analyst Jelle continued to observe a copycat formation by BTC/USD, which neatly followed a price fractal from 2020.
This ultimately produced a so-called “Bart Simpson” pattern — a spike higher, followed by a plateau and subsequent retracement — only to then break out even higher later on.
“$28.800 acting as a bottom so far. If we can hold here for the next week or so – I see us breaking $30.000 soon after,” Jelle predicted.
BTC/USD chart fractal. Source: Jelle/ Twitter
BTC price returns to “logical place”
With volatility returning to BTC/USD in recent days, John Bollinger, creator of the Bollinger bands volatility indicator, meanwhile called for caution.
Related: Is Bitcoin overbought or oversold? Use Bollinger Bands to find out!
Bitcoin, he noted on the day, had reversed away from its upper Bollinger band, abandoning a breakout beyond it.
“Bitcoin just pulled back to its middle Bollinger Band and its prior breakout level. We call this a logical place. Time to Pay Attention!” he tweeted.
BTC/USD 1-day candle chart (Bitstamp) with Bollinger bands. Source: TradingView
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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