Bitcoin sees “logical and healthy” pullback as $25,000 becomes a key price line in the sand. On April 22, BTC/USD barely held $27,000 as another round of losses left bulls with little firepower. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD just preserving the $27,000 mark on the day after the Wall Street trading week ended on a sour note. In contrast to United States equities, which managed to seal modest gains on the day, Bitcoin continued to suffer as analysts warned of a return to nearer $25,000. With that, BTC/USD was down 10% for the week and 4% in April overall, according to data from monitoring resource Coinglass, amid a dramatic turnaround in fortunes versus much of Q1.
Despite the recent pullback, popular trader Credible Crypto believes that the long-term uptrend remains intact. He insisted in part of his latest Twitter commentary, “If your macro thesis on Bitcoin has changed because of a $2,000 pullback after a $10,000+ vertical rally from 19k to 30k+ you’re doing it wrong.” An additional post argued that such price action was “common” in crypto markets. “The last major retest we had was at 19k before our rally to 30k+. A retest of 25k here would be logical and healthy,” it stated. Financial information resource Stockmoney Lizards agreed, telling Twitter followers that the road higher may be slow and steady. “After these huge green candles, we usually find some cooldown,” it wrote about the 3-month BTC/USD chart. “Short-/mid-term still bullish (3 months), but don’t expect it to go too fast.”
Crypto analyst CryptoCon delivered similar conclusions on the basis of the latest movements in Bitcoin’s relative strength index (RSI). Used to determine overbought and oversold conditions at given price points, RSI can help offer insights into forthcoming price trends. “Short term Bitcoin price action seems grim, but behind the scenes, the Weekly RSI has broken out of a 6-year downtrend and is now attempting to make support,” it revealed, comparing the latest action to prior halving cycles. “Bitcoin is now at decision point. Continue 2019 parabolic price action, or take the healthier, steady 2015 approach?”
Trader Skew delved into the potential near-term price targets for BTC/USD, focusing on moving averages (MAs). The zone north of $25,000 remained the principal point of interest, with the 200-week MA residing at $25,850. Market composition remained apt to liquidate traders, with Coinglass data showing April 22 costing crypto longs another $173 million. As Cointelegraph reported, April 19 had seen the largest amount of long liquidations of 2023 so far.
Despite the recent downturn, many analysts and traders remain optimistic about the long-term prospects for Bitcoin. While the current pullback may be causing some concern, many believe that it is a natural and healthy part of the market cycle. As always, investors should conduct their own research and make informed decisions before entering the market.