Bitcoin climbs above $41K on Wall Street open as gold dives, dollar cements highs

Market Analysis

Bitcoin (BTC) reclaimed $41,000 on April 14 as the first day of Western stock market trading after Easter painted a more bullish picture.

Analysis calls for caution on BTC

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD spiking above $41,000 during April 19, reaching five-day highs on Bitstamp.

In a refreshing change to the gloomy atmosphere over the holiday period, the largest cryptocurrency began to copy what gold had achieved days prior, the latter since declining from $1,998 to $1,960 per ounce at the time of writing.

Equally energized, however, was the U.S. dollar, which continued cementing its strength in an ongoing potential headwind for BTC.

The U.S. dollar currency index (DXY) remained above the crucial 100 mark on the day, with analysts previously predicting that its next move would be a make-or-break moment for crypto.

As crypto sentiment exited “extreme fear,” monitoring resource Material Indicators nonetheless called for a level-headed appraisal of BTC price action.

Several moving averages, it said on April 19, needed to be reclaimed before the outlook could fundamentally change.

On April 18, however, the account acknowledged the “bullish” nature of the current chart setup.

Pundit pins hopes on RSI bull trigger

In a now rare bull flag from the stock market, meanwhile, the S&P 500 posted a bottom signal on April 19, which has historically spurred BTC price gains.

Related: Bitcoin hodlers targeting $100K is what’s preventing 40% price drawdown, data suggests

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 due.

Bitcoin’s own RSI chart looked similarly primed for positive performance. On daily timeframes, RSI stood at 44.7, having just climbed above the 14-day moving average in what has been a bullish event throughout 2022.

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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