Bitcoin (BTC) is at a historically important price point for hodlers, but where will it go in the next few days?
With the monthly close approaching and countries gearing up for the May Day holiday, traders are formulating options — with some surprises.
$35,000 in focus
While Bitcoin market commentators rarely agree, one thing has been more or less accepted this week – April’s monthly close will be volatile.
This volatility could be exacerbated by a lack of trading volume as markets are closed for weekends or long weekends.
However, even with macro participation, the situation does not appear to be favorable for Bitcoin bulls. As Cointelegraph reported, all major indexes (excluding China) closed in the red on Friday.
“There’s nothing to like about this candle except that it’s still above monthly support (but that could change today),” popular Twitter trader Cryptotoad thus summed up as part of his latest update.
“Support next month is $35,000.”
Data from on-chain monitoring resource Coinglass shows that BTC/USD is down 15% so far in April, the worst April in Bitcoin history.
So far, BTC/USD has managed to avoid falling below liquidity around $37,500, but Cryptotoad is not alone in thinking this could be the focus of the charts in the near term.
Jordan Lindsey, founder of trading firm JCL Capital, marked $35,000 as just one of two “big tech levels” that he considers important.
“Bitcoin’s only two levels that matter right now. $35k is channel support and below $35k is a major technical glitch. Prices are technically bullish since $38k posted on this account on Feb. 4, since $53,000 The dollar has been neutral since the glitch. Everything else is noise,” he told Twitter followers on Friday.
If such a drop materializes, it would put Bitcoin not far from last week’s worst-case target of $30,000, which is both described as a “final bottom” and a level that could be reached in June.
‘Decent relief’ likely to follow spot-level retention
Meanwhile, trader Credible Crypto took a more optimistic view that avoiding a dip below $37,000 would put Bitcoin in a better position.
Related: Study Says $27K ‘Max Pain’ Bitcoin Price Is Ultimate Dips Buying Opportunity
“If we can hold on, we should see some decent relief,” he tweeted on Saturday with a chart illustrating the prognosis.
“Based on my last update, I can see valid arguments for both, but the bullish scenario has the edge due to the wave structure. It could easily fail at 37.7k if we get to levels expected to rush into the orange zone and 36k. “
At the time of writing, about 12 hours from the close, BTC/USD is trading at $38,600.
The views and opinions expressed here 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.