Bitcoin (BTC) reclaimed the $41,000 level on April 14 as the Western stock market’s first trading day after Easter painted a more bullish picture.
Analysis advises caution on BTC
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair breaking above $41,000 on Tuesday, hitting five-day highs on Bitstamp.
In a refreshing change from the gloomy atmosphere during the holiday period, the largest cryptocurrency began to copy what gold had achieved days before, the latter since declining from $1,998 to $1,960 per ounce at the time of writing this article.
Equally energized, however, was the US dollar, which continued to consolidate its strength in a potential ongoing headwind for BTC.
The US Dollar Currency Index (DXY) held above the crucial 100 mark on the day, and analysts previously predicted that his next move would be a watershed moment for cryptocurrencies.
As crypto sentiment emerged from “extreme fear”, monitoring resource material indicators nonetheless called for a sober assessment of BTC price action.
Several moving averages, he said on Tuesday, needed to recover before the outlook could fundamentally change.
Before you get too excited about yesterday’s #bitcoin PA, remind yourself that bulls need to reclaim these key moving averages to validate a trend reversal. To avoid potential bull trap, watch for volume and wait for confirmations. https://t.co/26BLOFwenL pic.twitter.com/r219S4YYCv
— Material Indicators (@MI_Algos) April 19, 2022
Before you get too excited about yesterday’s #Bitcoin PA, remember that the bulls need to reclaim these key moving averages to validate a trend reversal. To avoid a possible bull trap, watch the volume and wait for confirmations
On Monday, however, the account recognized the “bullish” nature of the current chart setup.
The expert puts hopes in the bullish trigger of the RSI
Meanwhile, andIn a now rare stock market bull flag, the S&P 500 posted a lower signal on Monday, which has historically spurred BTC price gains.
The move involves the Stochastic Relative Strength Index (RSI) on the three-week chart. Aurélien Ohayon, CEO of software firm XOR Strategy, concluded that a repeat performance was now expected.
#BITCOIN ONE OF THE MOST ACCURATE BOTTOM DETECTORS I HAVE FOUND.
When the 3W-Stochastic RSI K-line of the S&P500 touched the 0 line, a #BTC bottom has been reached and a huge bull run has followed.
It just touched the 0 line.#SPX $SPX $BTC #crypto pic.twitter.com/DKRJv6FqIq
— TAnalyst (@AurelienOhayon) April 18, 2022
#BITCOIN ONE OF THE MOST ACCURATE BACKGROUND DETECTORS I HAVE FOUND.
When the S&P500 Stochastic RSI 3W K-line touched the 0-line, a #BTC bottom was reached and a huge bull run followed.
It just touched line 0.
Bitcoin’s own RSI chart looked likewise poised for a positive performance. On daily time frames, the RSI came in at 44.7, having broken above the 14-day moving average in what has been a bullish event throughout 2022.
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