Bitcoin (BTC) goes into the red for this month of April as attention is mainly riveted on ether (ETH). This correction could be due to profit taking by buyers. Thus, there will probably be new DIPs.
Bitcoin (BTC) is back in the $28,000 area
The queen of crypto hit the psychological level of $30,000 in mid-April. After that, it takes a 7.5% drop this week, dropping below April’s opening price at $28,475. On the daily candlestick chart of bitcoin (BTC), these moves look like a pump & dump. This volatility is descending on this leader in cryptos by capitalization as the banking turmoil has subsided. Nevertheless, BTC remains very bullish according to its price macro structure after the trend change in mid-March. Not to mention the fact that this crypto has seen a 70% increase this year.
However, this week’s decline is unlikely to initiate a crash. Indeed, ETH is attracting much more attention from investors after the success of Ethereum’s Shanghai upgrade. Thus, the likelihood of there being sudden moves in bitcoin (BTC) is minimal. Moreover, the current correction could be due to profit taking after the excess of optimism lately. Indeed, we can see on the 14-day RSI that the bulls show signs of retreat. Nevertheless, a monthly close in the red is possible. If so, one might consider a descent to the $26,556 support. The break of this support could trigger a new DIP around $23,200.
A monthly close in the red?
Indeed, we could envisage a scenario where bitcoin closes the month of April in the red. However, the support at $26,556 should hold the price. This slight decline may then offer investors a long-term buying opportunity. If bitcoin (BTC) breaks this closest support level, we can consider a drop to a lower DIP. In this case, the March 67.8% fib level could be the next downside target.
Thus, a short position towards these two price targets seems interesting. If bitcoin (BTC) breaks through April’s high ($31,050), we can expect an explosive rise towards $35,000.
Admission: $29,478;
Stop: $30,780;
Goal 1: $26,556;
Goal 2: $23,200.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
