Bitcoin (BTC) closed above a crucial level on April 20 as the daily chart offered a long-awaited “buy” signal.
“Bitcoin is a good buy at $41,500,” says one trader
Data from Cointelegraph Markets Pro and TradingView confirmed a daily close at $41,500 on Bitstamp on Tuesday.
Strong performance, sustained gains mean further rallies should follow, according to a trader watching a buy/sell indicator on daily time frames.
Last Sell Signal was at 46K$BTC Dumped 38K
Now Buy Signal at 41K.Note: $BTC Needs Daily Candle Close Above 41200 pic.twitter.com/AOh9XECBNI
— Trader_J (@Trader_Jibon) April 19, 2022
The macroeconomic picture also favored Bitcoin on the day, after the US dollar found resistance to its own bull run.
The US dollar money index (DXY) fell back after hitting 101 on Tuesday, its highest level since April 2020.
“DXY correction as expected, fueling BTC rebound”, answered the popular Crypto Ed trader.
Gold also faced initial difficulties, shedding 2.6% from its highs of $1,998 from earlier in the week.
However, BTC price action remained close to the daily close as fellow trader and analyst Rekt Capital predicted turbulence to come on the longer time frames.
“Bollinger Bands are adjusting to price”, said to his Twitter followers, referring to the Bollinger Bands volatility indicator on the weekly chart.
“This indicates increasing price compression that often precedes strong volatility.”
There’s no lack of “buy the dip” signals
On-chain metrics were just as positive on the day, with several Cointelegraph notes continuing to suggest a floor structure has already been completed.
Among them was the Bitcoin reserve risk chart, now firmly in its launch zone in what has historically advanced the start of bullish phases.
When it returned to the target zone, analyst Philip Swift described it as “btfd territory.”
In more formal terms, those who buy BTC at current reserve risk levels have had a better chance of making “superior” profits in the long run.
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