Bitcoin traders have been closely watching the price of BTC as it approaches the end of April. Despite some unsettled price action earlier in the week, BTC has returned to sideways trading, with markets witnessing an eerie calm despite the potential for volatility thanks to lower weekend liquidity. The current price of BTC sits just above $29,000, with traders hopeful that no unwelcome surprises will greet the candle closes.
Popular trader Elizy has analyzed the 3-day chart and sees a potential upside target of up to $32,500 in the event of a breakout. However, the loss of a key trend line below spot price would be cause to “become really bearish.” On the monthly chart, Elizy notes that Bitcoin has rallied into the 2021 lows, which is a major resistance and supply area. As part of the longer-term roadmap, Bitcoin should see choppy and slightly downward movement during May through September or October, before performance picks up.
Other traders have resorted to examining strength on the weekly chart and higher. Analyst Moustache notes that support is holding above key exponential moving averages (EMAs) in a manner similar to that which preceded major upside in previous years. He comments, “Imagine being bearish on BTC even though it has been forming support ABOVE the EMA ribbon bands for several weeks. Good luck bears.” Last week, Moustache argued that “smart money” had already built BTC positions and was now waiting for the real upside to kick in.
At the current spot price of $29,267, Bitcoin would go some way to canceling out the prior weekly candle losses were it to close without last-minute volatility. However, it remains to be seen where BTC will go in the short-term. Some traders are optimistic about a potential breakout, while others are cautious and see the potential for further downside.
Overall, the Bitcoin market continues to be closely watched by traders, with many analyzing various charts and indicators in an attempt to gain an edge. It remains to be seen whether BTC will break out of its current range or continue trading sideways. As always, caution is advised when trading cryptocurrencies, as they can be highly volatile and unpredictable.
