Bitcoin regains yearly open as trader says $50K next week ‘might be likely’

Market Analysis

Bitcoin (BTC) consolidated above the 2022 yearly open on April 2 after a return to form briefly saw bulls reclaim $47,000.

BTC price holds “crucial” long-term support

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $46,600 Saturday on the back of a clear bounce at long-term support.

The pair had dipped to lows of around $44,300 Friday, these nonetheless shortlived as positive sentiment took control into the Wall Street open.

For Cointelegraph contributor Michaël van de Poppe, with intent to retain newly flipped support confirmed, the odds were on for an attack on $50,000.

“Crucial area held up for Bitcoin, in which continuation upwards seems likely,” he summarized to Twitter followers on the day.

“If we visit the $45k range again, I think it’s a sign of weakness and we’ll go $40k area. If we don’t, then $50k next week might be likely.”

PlanB, the analyst behind the popular stock-to-flow based Bitcoin price models, meanwhile noted continued strength in Bitcoin’s relative strength index (RSI).

As Cointelegraph reported, bullish RSI performance had accompanied price squeezes throughout recent weeks.

Reserve Risk metric stays in “outsized” returns zone

Over the course of March, meanwhile, one on-chain metric began to deliver ever-stronger buy signals for BTC/USD.

Related: ‘Hold my beer’ — Terra already up $165M from buying Bitcoin as BTC stash nears Tesla’s

Reserve Risk, which offers an indication of when to invest in order to guarantee “outsized” returns over time, remained in its target zone this weekend after more than four weeks.

While showing signs of trending up, Reserve Risk hinted that the recent price rises were not the end of the story on higher timeframes.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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