Bitcoin fails to hold $40K with traders still hoping for a BTC price relief bounce

Market Analysis

Bitcoin (BTC) pierced $40,000 at the Wall Street open on April 26 as its latest relief rally lasted less than 24 hours.

$39,500 eyed as BTC safety net

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping from local highs of $40,800 on April 26.

At the time of writing, volatility was in evidence as bulls and bears tussled for $40,000, a level which had been beaten with April 25’s uptick.

United States equities contributed to the return of sell-side pressure, with the Nasdaq 100 promptly losing 1.5% on the open and the S&P 500 trading down nearly 1%.

For popular trader Crypto Ed, the odds were on for a trip to $39,500 before another relief bounce took the market higher, potentially towards $42,800.

A similar angle came from fellow analyst and trader Rekt Capital, who spied underlying relative strength index (RSI) support as grounds to expect bullish continuation after a possible dip.

“BTC may be dipping now but the red diagonal on the RSI suggests that this current rally isn’t over,” he tweeted alongside a chart showing the setup.

“$BTC could dip to as low as the red area but should be able to enjoy trend continuation afterwards upon successful retest.”

As Cointelegraph reported, RSI has been responsible for various short-timeframe breakouts on BTC/USD in recent months.

Dogecoin holds Twitter-inspired gains

On altcoins, it was Dogecoin (DOGE) once again leading the pack, with its latest gains propelling it back into the top ten cryptocurrencies by market cap.

Related: Dogecoin price risks 40% correction despite Elon Musk-Twitter euphoria

Famous as his pet crypto asset, DOGE had profited from Tesla CEO Elon Musk closing a deal to buy Twitter, and DOGE/USD was up 11% in 24 hours at the time of writing.

Also performing well was Terra’s LUNA token, while largest altcoin Ether (ETH) copied Bitcoin in failing to hold major support, this time at $3,000.

On monthly timeframes, however, ETH/USD was still holding up, Rekt Capital argued, despite the low-timeframe weakness.

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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