On April 2nd, Bitcoin (BTC) consolidated above the yearly open of 2022. This after a brief return to form saw bulls recoup $47,000. According to some analysts, this indicates that a drop below $45k is the only thing that stands in the way of Bitcoin hitting its next milestone. Could Bitcoin really hit $50k next week though?
Long-term Support For Bitcoin Is “Crucial.”
BTC/USD was hovering between $46-47k on Saturday. According to data from Cointelegraph Markets Pro and TradingView, after a clear bounce at long-term support.
The pair had fallen to lows of approximately $44,300 on Friday, but these were short-lived as an optimistic mood dominated the Wall Street open. To keep freshly flipped support confirmed, Cointelegraph contributor Michal van de Poppe was betting on an attack for $50,000. For those who have been reading our predictions over the past few days, you would notice that this goes against the concept of a possible reset.
On the day, he summarised to Twitter followers, “Crucial area held up for Bitcoin, in which continuing upwards seems plausible.”
“If we return to the $45k range, I believe it will be a sign of weakness, and we will move to the $40k range. If we don’t, $50k next week is a possibility.”
Meanwhile, PlanB, the analyst behind the popular stock-to-flow-based Bitcoin price models, highlighted that Bitcoin’s relative strength index has remained strong (RSI). Bullish RSI performance has accompanied price squeezes in recent weeks, as Cointelegraph observed.
The Reserve Risk Metric Remains In The “Excessive” Returns Zone
Meanwhile, throughout March, one on-chain indicator began to generate more strong buy signals for BTC/USD. After more than four weeks, Reserve Risk, which indicates when to invest to ensure “outsized” returns over time, stayed in its target zone this weekend.
Reserve Risk warned that the current price gains were not the end of the tale on longer timescales, albeit displaying symptoms of going up.