Bitcoin Resets Bull Market BTC Price Indicators As April Dip Passes 7%
The BTC price decline is resetting a number of key metrics for Bitcoin (BTC) as it becomes out of favor.
Bitcoin RSI returns to key support
Data from Cointelegraph Markets Pro and TradingView show that BTC/USD is currently trading around $66,000 after falling 5% on an hourly candle.
Bitcoin may have dropped 7% in April, but a retest of support is having a cathartic effect on hot markets.
As Cointelegraph reports, along with the latest drop came a huge liquidity event — totaling $400 million for Bitcoin and altcoins at the time of writing.
With it, according to the data monitored by Input CoinGlass, the rates of funds began to change negatively.
“Prices are falling, and funding is falling,” noted trader Jelle wrote in a post on X.
“BTC and ETH blocked contracts already to the downside. All gains must be lost before price discovery.”
In the latest edition of the “Asia Morning Color” market update sent to Telegram channel subscribers, trading firm QCP Capital acknowledged a significant change in financial position.
“The pace of the move was driven by high volume transactions on retail-heavy exchanges such as Binance, with total funding increasing from 77% to flat,” he wrote. 60-72k range.
“While perp funds are compressed, the rest of the forward curve is very steep,” he added.
“Is this action going to bring the whole curve down?”
At the same time, Bitcoin's Relative Strength Index (RSI) readings on daily time frames are returning to the 50 midpoint.
This is an important line in the sand during the peak, and the protection has been identified for Bitcoin since the end of January.
Bitcoin, like Gel, among others, notes, presents its strongest performance with an RSI above 70 – corresponding to an “overbought” signal for the price.
Bollinger Bands echoed $45,000
Moving on to volatility, Bollinger Bands are hinting at new pre-release levels for BTC/USD on daily timeframes.
Related: Highest Monthly Close Ever – 5 Things to Know in Bitcoin This Week
Crossing the chart to X, noted analyst Matthew Hyland drew comparisons with February.
Daily Bollinger Bands continue to tighten to levels not seen since the move started at $45k, he commented.
At the end of December 2023, Cointelegraph reported that both the RSI and Bollinger Bands called for an acceleration of the bull market.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
