Bitcoin (BTC) is headed for a relief bounce but is still at risk of falling as low as $30,000 before May, new analysis warned on April 18.
The drop to $30,000 is the “risk” for April
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hovering around $39,000 on April 18, as bearish forecasts for the pair increased.
After losing support at $40,000 overnight on April 18, Bitcoin faced tight liquidity in the absence of US and European stock trading, thanks to the Easter weekend.
For popular Crypto Ed trader, a short-term pullback should bottom at $37,500 before a bounce occurs.
“First we have to recover the $40,000, if we do that, it will certainly give a bullish push to the market”he said in his latest YouTube update.
Should that happen, the $43,000 level could be the local high, but going forward, the picture looks bleak. Using Elliott Wave analysis, Crypto Ed predicted a repeat of recent moves lower interspersed with a brief relief bounce. The goal, he concluded, was $30,000.
“That’s the risk for the next, say, two weeks,” he added.
The popular Bitcoin Jack Twitter account also called for the coming weeks to be a time of reckoning for long-term price action.
Room for a squeeze up but then heading to the monthly level below in due time is where my thinking is at
Guessing early May to decide major trend in to summer time pic.twitter.com/Zo8hARsyo8
— //Bitcoin ack (@BTC_JackSparrow) April 18, 2022
My view is that there is room for a rally, but then it will head to the lower monthly level in due course.
Guessing that the main trend towards summer will be decided at the beginning of May
As Cointelegraph previously reported, $30,000 as a target for May or June is nothing new.
Gold lashes out as cryptocurrency correlation declines
Even though Bitcoin is under pressure, there was no sense of pain for the safe haven of gold on April 18.
After rallying for the entire past week, the XAU/USD pair approached the $2,000 mark again, approaching the $2 resistance level before pulling back around $1,990.
However, the pair traded at its highest level since March 11, turning its back on the US dollar’s own strength.
“A 50-day correlation coefficient for Bitcoin and gold is around minus 0.4, the lowest since 2018,” he pointed journalist Colin Wu on the implications of the divergent behavior of the prices of gold and Bitcoin.
“For now, Bitcoin remains closely correlated to the Nasdaq 100 Index. The Nasdaq 100 is down about 15% this year, while Bitcoin has shed 16%.”
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