Bitcoin fails to hold $40K with traders still hoping for a BTC price relief bounce

Bitcoin (BTC) pierced $40,000 at the open on Wall Street on April 26 as its latest relief rally lasted less than 24 hours.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

$39,500 referred to as BTC safety net

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling from local highs of $40,800 on April 26.

At the time of writing, volatility was evident as bulls and bears competed for $40,000, a level that had been breached with the April 25 rally.

US stocks contributed to the return of selling pressure, with the Nasdaq 100 rapidly shedding 1.5% at the open and the S&P 500 trading down nearly 1%.

For popular Crypto trader Ed, the odds of a trip to $39,500 were on before another relief bounce took the market higher, potentially to $42,800.

A similar angle came from analyst and trader Rekt Capital, who saw the underlying RSI support as reason to expect a bullish continuation after a potential drop.

“BTC may be falling now, but the red diagonal on the RSI suggests that this current rally is not over,” he said. tweeted along with a graphic showing the settings.

“$BTC could drop to the red area, but should be able to enjoy trend continuation after a successful retest.”
BTC/USD annotated chart with RSI. Source: Rekt Capital/Twitter

As Cointelegraph reported, RSI has been responsible for several short-term breakouts in BTC/USD in recent months.

Dogecoin Has Twitter-Inspired Gains

In altcoins, Dogecoin (DOGE) once again led the pack, with its latest gains propelling it back into the top ten cryptocurrencies by market cap.

Related: Dogecoin Price Risks 40% Correction Despite Elon Musk-Twitter Euphoria

Famous as its pet crypto asset, DOGE had benefited from Tesla CEO Elon Musk closing a deal to buy Twitter, and DOGE/USD is up 11% in 24 hours at the time of writing.

DOGE/USD (Binance) 1-hour candlestick chart. Source: TradingView

Terra’s LUNA token also performed well, while the largest altcoin, Ether (ETH), copied Bitcoin by not having major support, this time at $3,000.

However, on monthly time frames, ETH/USD was still holding up, Rekt Capital argued, despite the low time frame weakness.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should do your own research when making a decision.