On April 23, Bitcoin (BTC) attempted to regain its previous position as its ten-day lows held steady.
$26,600 level becomes popular target for BTC price
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it climbed to circle $27,700 as of this writing.
Up around 2.5% from the lows set the day before, the pair remained on traders’ radar as a possible short opportunity at the weekly close.
“$26,600 is my target in my short position right now, and with it being the weekend it may take a bit longer to get there,” confirmed Crypto Tony to Twitter followers that day.
“It’s the most logical target and we also have offers popping up there now, so I’m looking forward to a reaction once it’s tested.”
That target would mark a new bottom for Bitcoin, which lost 10% over the week to turn April’s performance negative overall.
Analyst Mark Cullen eyed the potential for BTC/USD to approach the April 21 CME futures closing price of $27,310 ahead of the weekly close.
“Lots of deals sit at 26,500, but I’m not sure they’re taking advantage of it yet,” added in the attached comment, offering a similar logical goal to Crypto Tony.
Another Twitter post pointed to increased selling in the spot market on Binance, which could add downward pressure in a less liquid weekend trading environment.
GM #Crypto!
Looks like the @binance spot selling is still trying to push price lower. They took a break as markets closed on Friday, but the algos seem to be kicking back in. pic.twitter.com/VQCROCYOnU
— AlphaBTC (@mark_cullen) April 23, 2023
A “horrible bearish engulfment” is coming
Market participants seemed to share the consensus on BTC price action more broadly, suggesting that short-term bearish moves still would not reverse the overall bullish trend by 2023.
Among them was Michaël van de Poppe, founder and CEO of trading firm Eight, who also shared the popular downside targets.
The weekly chart, he added, was still on track to print a higher low (HL), thus preserving the uptrend.
“I don’t see the whole bearish outlook,” argument.
“Weekly time frame we’re looking at for a HL, which looks like a possible case around $26,500-27,000 (maybe $25,000). Returning above $27,800 is likely a strong bullish reaction to $29,000 for Bitcoin and the continuation of the uptrend.”
The popular trader CryptoBullet sounded more nervous, even acknowledging that a weekly candle that dwarfed a full month’s progress would not necessarily mean the end of the bull run.
Even if we close the weekly candle as a horrendous Bearish Engulfing, it’s not over yet
Let me remind you what we had back in 2019 during the same Echo Bubble rally:
1 – Bear Market Low
2 – First Bounce
3 – Higher Low
4 – Weeks of sideways consolidation after… pic.twitter.com/MI4yYTAKBe— CryptoBullet (@CryptoBullet1) April 22, 2023
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