Bitcoin (BTC) made a brilliant comeback this week, rising more than 7%, indicating solid buying at lower levels. BitMEX co-founder Arthur Hayes said in a post on X that the US bond market crisis could be setting the stage for more policy response, and that could result in an “up only mode” for Bitcoin.
Blockchain and intelligence platform Glassnode said in a post on X that Bitcoin had built solid support at $79,000, with roughly 40,000 Bitcoin accumulated there. Bollinger Bands creator John Bollinger also echoed similar views. In a post on X, Bollinger said that Bitcoin was forming a “classic Bollinger Band W bottom,” but it needed confirmation.
Crypto market data daily view. Source: Coin360
Market participants will be closely watching the performance of the US dollar index (DXY), which is trading below the 100 level. Any further weakness in the US dollar could be bullish for Bitcoin.
If Bitcoin manages to hold on to the higher levels, it is likely to boost the sentiment in the cryptocurrency sector. That could trigger a recovery in select altcoins. What are the cryptocurrencies that may benefit from Bitcoin’s strength?
Bitcoin price analysis
Bitcoin broke and closed above the resistance line on April 12, which is the first indication that the corrective phase may be ending.
BTC/USDT daily chart. Source: Cointelegraph/TradingView
The bears are unlikely to give up easily and will try to pull the price back below the 20-day exponential moving average ($82,885). If they manage to do that, it suggests that the bears remain active at higher levels. The BTC/USDT pair could then drop to $78,500.
Buyers are likely to have other plans. They will try to defend the 20-day EMA on the way down. If the price rebounds off the 20-day EMA, it will signal a change in sentiment from selling on rallies to buying on dips. That enhances the prospects of a rally to $89,000 and, after that, to $95,000.
BTC/USDT 4-hour chart. Source: Cointelegraph/TradingView
The 20-EMA is sloping up, and the relative strength index (RSI) is in the positive territory, indicating an advantage to the bulls. A rebound off the 20-EMA suggests that…
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