Bitcoin (BTC) held $30,000 as support before Wall Street opened on April 11, raising fresh doubts about the strength of the rally.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
BTC price is finally tackling the $30,000 resistance cloud
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hit a 10-month high of $30,438 on Bitstamp.
After nearly a month of preparation, the eventual surge to $30,000 pleased many traders who viewed the move as a matter of time.
After Crypto Kaleo uploaded a roadmap showing BTC/USD continuing to gain, Crypto Kaleo argued that at current prices, Bitcoin is still the best investment allocation for capital rather than cash or altcoins.
“Bitcoin breaks out, of course all USD charts will look decently bullish,” reads part of the day’s Twitter comment.
“Look at the alt charts vs. BTC. I don’t see any that I like. While you may still be in USD with some alt positions, your capital is still best allocated by stacking more bitcoin.”
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Daan Crypto Trades, meanwhile, paid more attention to altcoins and thought that BTC/USD could now be consolidating.
“It will be interesting to see what happens here. I suspect we might see it cool down a bit, which means ALT/BTC pairs should gain some ground,” he wrote in part of a reaction tweet.
He added that if spot gains remain buoyant, Bitcoin market dominance could increase further.
BTC crypto market cap dominance, annotated chart. Source: Daan Crypto Trades/ Twitter
“Triple Bearish Divergence”
Despite regaining what had long been a mass resistance zone, Bitcoin’s attack did not inspire everyone.
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With almost $100 million in shorts liquidated on April 10-11, analytical resource Skew noted that there was “air” in Binance’s order book below $30,000 during the breakout.
Venturefounder, a contributor at on-chain analytics firm CryptoQuant, meanwhile, warned of a “bearish divergence” between the spot price and the relative strength index (RSI) on the daily chart.
“I’m sometimes looking for a short-term correction to at least $25,000 soon, possibly as far as $22,000,” revealed part of a forecast.
Annotated BTC/USD chart. Source: Venturefounder/ Twitter
Trader Cheds similarly viewed what he called a “triple bearish divergence” with on-balance volume (OBV), considering a short position but “not in one” overnight.
“Congratulations to the cops who were respectful and called for 30,000,” added Crypto’s Il Capo, the Twitter trader notorious for his bearish BTC price prediction, on the day.
“My bearish scenario is NOT lapsed yet.”
Some, meanwhile, have been critical of the bearish divergence thesis, with popular trader Crypto Ed dismissing the idea at slightly longer 3-day timeframes.
Annotated BTC/USD chart. Source: Crypto Ed/Twitter
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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