Bitcoin (BTC) continued to trade in a tight range around $30,000 over the weekend after a week of volatility.
BTC started the week around $28,300, but bulls managed to push the price to $30,900 by Friday, marking a fresh 10-month high. Since then, however, the price has retreated, with BTC hovering between $30,100 and $30,500. Despite this, BTC’s market cap has steadily increased, from $318.5 billion to $586.8 billion.
Ethereum (ETH), on the other hand, has been relatively quiet, remaining around $2,100 after gaining over 13% over the past seven days, thanks in part to the recently completed Shanghai upgrade. Overall, the cryptocurrency market has been relatively stable over the past few days, with most altcoins following BTC’s lead. The lower trading volumes over the weekend also helped calm the market.
Bitcoin At Crossroads, Analyst Warns
As bears and bulls continue to battle along a critical multi-year support-resistance zone, popular crypto analyst Ali is warning that Bitcoin could see a mild pullback. According to the expert, Bitcoin now faces a significant challenge if it attempts to surpass the resistance level between $30,270 and $32,150.
“Resistance from $30,270 to $32,150 remains a tough hurdle for Bitcoin where 770,000 addresses have bought 360,000 BTC,” Ali tweeted on April 16.
Ali advised caution if this support level breaks as the next key support lies at $27,600-$28,450. “Meanwhile, support holds strong from $29,330 to $30,200 where 700,000 addresses have bought 390,000 BTC. Be careful when this level breaks; The next key support lies at $27,600-$28,450,” he added.
This suggests that BTC may experience some downward pressure in the short-term. Nonetheless, Ali’s analysis shows that many investors are still willing to buy the cryptocurrency at current levels, indicating underlying support.
In a previous tweet, Ali pointed out that the Stock-to-Flow Ratio Multiple (SORP), an indicator with a strong track record of signaling the start of bull markets, is pointing to explosive growth for Bitcoin.
“Another bitcoin indicator points to explosive growth! Historically, aSORP (90d) below 1 signals a bear market and above 1 a bull market. In 2015, 2019 and 2020, this resulted in gains of 6,110%, 150% and 579%. aSORP recently moved above 1, suggesting $BTC is poised to go parabolic,” he wrote.
Mulder Sonny, another crypto analyst, predicts that Bitcoin could reach $85,000 before June 30th. In a Sunday tweet, the expert hinted that Bitcoin’s price could mimic 2015’s price action if the current quarter turns out strong, potentially creating a new all-time high or “blow-off on the top,” though it wasn’t a guarantee yet.
At press time, Bitcoin was trading at $30,331, down 0.28% according to CoinMarketCap. Likewise, Ether remained unchanged, toggling at $2,090 after a 0.54% drop over the same period.
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