A new analysis warned on April 18 that Bitcoin (BTC) is poised for a rebound, but could still fall all the way to $30,000 by May.
$30,000 dive is a ‘risk’ for April
Data from Cointelegraph Markets Pro and TradingView shows that BTC/USD hovered around $39,000 on April 18 as bearish forecasts for the pair increased.
After losing support at $40,000 overnight on April 18, Bitcoin faced illiquidity as U.S. and European stock markets were not trading due to the Easter weekend.
For popular trader Crypto Ed, a near-term retracement should see a bottom at $37,500 before the rally begins.
“The $40,000 needs to be recovered first; if we do that, it will definitely give the market a bullish impulse,” he said in his latest YouTube update.
If that happens, $43,000 could be a local top, but looking ahead, the picture looks bleak. Using Elliott Wave analysis, Crypto Ed predicts a repeat of the recent downtrend, interspersed with brief relief rallies. He concluded that the target is $30,000.
“That’s the risk going forward, say, two weeks,” he added.
Popular Twitter account Bitcoin Jack likewise called for a moment of reckoning for the long-term price action in the coming weeks.
Squeeze the space and then in due course sub-monthly is where my mind goes
Guess the key trends that determine summer time in early May pic.twitter.com/Zo8hARsyo8
— // Bitcoin Confirmed (@BTC_JackSparrow) April 18, 2022
As previously reported by Cointelegraph, targeting $30,000 in May or June is nothing new.
Gold Out as Crypto Correlations Weake
Despite the pressure on Bitcoin, safe-haven gold was not in pain on April 18.
Related: A Stronger Dollar Mimics the 2020 Coronavirus Crash – 5 Things You Need to Know About Bitcoin This Week
After climbing over the past week, XAU/USD climbed again to the $2,000 mark, within $2 of resistance, before falling back to around $1,990.
Still, the pair is at its highest level since March 11, putting the greenback’s own strength in competition.
“The 50-day correlation coefficient between Bitcoin and gold is about negative 0.4, the lowest level since 2018,” reporter Colin Wu pointed out, referring to the impact of the difference in the price performance of gold and Bitcoin.
“Currently, Bitcoin remains closely correlated with the Nasdaq 100. The Nasdaq 100 is down about 15% this year, while Bitcoin is down about 16%.”
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.