Bitcoin (BTC) remains a slave to the US dollar on April 27, as the US national currency brings a new disgrace to risk assets in general.
BTC faces support zone to hold on
Data from Cointelegraph Markets Pro and TradingView painted a dire picture of BTC markets on April 27, as bulls battled for control of short-term support levels.
After falling to $37,700 on April 26, Bitcoin experienced a relief bounce culminating in a rally to $39,200, an area that is now critical for support again, a trader says.
In his latest YouTube update, Cointelegraph contributor Michaël van de Poppe highlighted the area around $39,300 as a springboard for BTC/USD to attack near-term resistance. According to him, the pair could reach $42,600.
“If we lose this one, I think we are looking for short opportunities,” he explained, with possible confirmations of a bottom below $37,000.
“If we lose this level as support, I think it could take a nosedive as we’re going to trigger liquidity below the lows and then we could be testing some lower levels where ultimately if the markets are really willing to make an atomic bomb, I’m looking at $30,000 as the ultimate bottom for the markets.”
Van de Poppe is not alone in calling for a $10,000 drop. In recent weeks, several figures have given $30,000 as a target, including former BitMEX CEO Arthur Hayes and Bloomberg Intelligence chief commodity strategist Mike McGlone.
In his latest blog post, Hayes expanded on his short- and medium-term view of asset prices, forecasting a dramatic revival for both Bitcoin and gold, which he says will reach $1 million and as high as $20,000, respectively. in 2030.
At the time of writing, the XAU/USD pair was trading at $1,887. having nearly hit $2,000 on April 18.
The dollar could rise on the approach of a crucial resistance
As throughout this week, it all depends on the US dollar currency index (DXY).
Hitting 103.28 on April 27, DXY is attempting to match and break its March 2020 highs, something that would be a multi-decade high if it succeeds.
Van de Poppe pointed to 103.77 as the level to watch, as a break to the upside would reduce pressure on Bitcoin and other risk assets.
“If DXY is finding a top – which is most likely going to be above those highs – and takes liquidity there, I think you will want to go long Bitcoin,” he added, predicting a “serious run” for BTC if a retracement of the DXY is coming in tandem with BTC/USD regaining support.
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