Bitcoin (BTC) is at a historically important price level for holders, but where could it be heading in the days ahead?
As the monthly close approaches and several countries prepare to celebrate the Labor Day holiday, traders are plotting the options, with a few surprises.
$35,000 becomes key level
Although Bitcoin market commentators rarely agree on many things, one thing is more or less accepted this week: that the April monthly close will be volatile.
That volatility can be exacerbated by a lack of trading volume due to markets being closed for the weekend or the bank holiday.
However, even with the macro participation, the situation does not seem to favor Bitcoin bulls. As Cointelegraph reported, on Friday all major indices, with the notable exception of China, closed the day in the red.
“There is nothing bullish about this candle other than it is still above monthly support (but that could change today),” popular Twitter trader “Cryptotoad” summed up as part of his latest update.
“Next monthly support at $35,000.”
April so far has seen losses of 15% for the BTC/USD pair, the worst April in Bitcoin history, data from on-chain monitoring resource Coinglass shows.
The BTC/USD pair has so far managed to avoid a drop below liquidity around $37,500, but Cryptotoad is not alone in arguing that this could now become a short-term chart spotlight.
Jordan Lindsey, founder of trading firm JCL Capital, singled out $35,000 as one of what he sees as two important “big technical levels.”
“The only two levels that matter right now in Bitcoin. $35,000 is channel support and below that is the major technical breakout. Price is technically bullish from $38,000 Feb 4 posted on this account and neutral from the USD breakout. 53,000. Everything else has been noise,” said on Friday to his followers on Twitter.
Should that drop materialize, Bitcoin would sit not far from last week’s $30,000 target in a worst-case scenario, described as both a “definitive bottom” and a likely level to hit in June.
‘Decent relief’ could follow retention of spot levels
Taking a more optimistic view, meanwhile, trader Credible Crypto argued that avoiding the drop below $37,000 puts Bitcoin in a stronger position.
“If we can hold out here we should see some decent relief,” tweeted on Saturday next to a chart illustrating the forecast.
“Based on my latest update I can see valid arguments for both, but I give the upper hand due to the wave structure. Easy invalidation at $37,700, if we get to that expect a dump into the orange region and 36,000.”
At press time, with about 12 hours to go until the monthly close, the BTC/USD pair was trading at $38,600.
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 do your own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.