Bitcoin (BTC) reclaimed $41,000 on April 14 as the first day of Western stock market trading after Easter painted a more bullish picture.
Analysis calls for caution on BTC
In a refreshing change to the gloomy atmosphere over the holiday period, the largest cryptocurrency began to copy what gold had achieved days prior, the latter since declining from $1,998 to $1,960 per ounce at the time of writing.
Equally energized, however, was the U.S. dollar, which continued cementing its strength in an ongoing potential headwind for BTC.
As crypto sentiment exited “extreme fear,” monitoring resource Material Indicators nonetheless called for a level-headed appraisal of BTC price action.
Several moving averages, it said on April 19, needed to be reclaimed before the outlook could fundamentally change.
Before you get too excited about yesterday’s #Bitcoin PA, remind yourself that bulls need to reclaim these key moving averages to validate a trend reversal. To avoid potential bull trap, watch for volume and wait for confirmations. https://t.co/26BLOFwenL pic.twitter.com/r219S4YYCv
— Material Indicators (@MI_Algos) April 19, 2022
On April 18, however, the account acknowledged the “bullish” nature of the current chart setup.
Pundit pins hopes on RSI bull trigger
In a now rare bull flag from the stock market, meanwhile, the S&P 500 posted a bottom signal on April 19, which has historically spurred BTC price gains.
The move involves the stochastic relative strength index (RSI) on the three-week chart. Aurélien Ohayon, CEO of software firm XOR Strategy, concluded that a repeat performance was now due.
#BITCOIN ONE OF THE MOST ACCURATE BOTTOM DETECTORS I HAVE FOUND.
When the 3W-Stochastic RSI K-line of the S&P500 touched the 0 line, a #BTC bottom has been reached and a huge bull run has followed.
— TAnalyst (@AurelienOhayon) April 18, 2022
Bitcoin’s own RSI chart looked similarly primed for positive performance. On daily timeframes, RSI stood at 44.7, having just climbed above the 14-day moving average in what has been a bullish event throughout 2022.
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