Bitcoin (BTC) is at a historically important price point for hodlers, but where could it be heading in the days ahead?
As the monthly close approaches and several countries prepare for the May holidays, traders are weighing the options, with a few surprises.
$35,000 becomes a key focus
While Bitcoin market commentators rarely agree on much, one thing is more or less accepted this week: that the April monthly close will be volatile.
Due to the weekend, that volatility has the potential to be exacerbated by a lack of trading volume thanks to the markets being off over the weekend or long weekend.
However, even with macro participation, the situation would seem not to favor Bitcoin bulls. As Cointelegraph reported, all major indices, with the notable exception of China, ended in the red on Friday.
“There is nothing bullish about this candle, other than it is still above monthly support (but that could change today),” popular Twitter trader Cryptotoad summarized as part of his last update.
“Next monthly support at $35k.”
April has so far generated 15% losses in BTC/USD, the worst April in Bitcoin history, data from on-chain monitoring resource Coinglass shows.
So far, BTC/USD has managed to avoid a drop below liquidity at around $37,500, but Cryptotoad is not alone in arguing that this could now become a short-term chart focus.
Jordan Lindsey, founder of trading firm JCL Capital, marked $35,000 as one of two important “big technical levels.”
“The only two levels that matter right now in Bitcoin. $35k is channel support and below that is a major technical breakout. Price is technically bullish from $38k Feb 4 posted on this account and neutral from $53k breakout. Everything others have been noise, “he said Twitter followers on Friday.
If that drop materializes, it would put Bitcoin not too far from last week’s worst-case target of $30,000, described as a “latest backgroundand a level likely to be reached in June.
“Decent relief” could follow point level retention
Taking a more optimistic view, meanwhile, fellow trader Credible Crypto argued that avoiding a drop below $37,000 puts Bitcoin in a stronger position.
Related: $27K ‘Peak Pain’ Bitcoin Price Is Best Buying Opportunity, Research Says
“If we can hold out here, we should see some decent relief,” he said. tweeted on Saturday next to a chart illustrating the forecast.
“Based on my latest update, I can see valid arguments for both, but give the upper hand to the bullish scenario due to the wave structure. Easy invalidation at 37.7k, if we hit that, look for a flush into the orange region and 36k.”
At the time of writing, with around 12 hours to go until the close, BTC/USD was trading at $38,600.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.