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.

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