Bitcoin (BTC) sits at a historically important price point for hodlers, but where could it be headed in the coming days?
As the monthly close looms and various countries prepare for the May holidays, traders are mapping out the options – with some surprises.
$35,000 becomes key focus
While Bitcoin market commentators rarely agree on much, one thing is more or less accepted this week – that April’s monthly close will be volatile.
Due over the weekend, that volatility has the potential to be exacerbated by a lack of trading volume thanks to markets being off either for the weekend or long weekend.
Even with macro participation, however, the situation would seem not to favor Bitcoin bulls. As Cointelegraph reported, Friday saw major indices, with the notable exception of China, finish in the red.
“Nothing bullish about this candle other than that it’s still above monthly support (but that could change today),” popular Twitter trader Cryptotoad thus summarized as part of his latest update.
“Next monthly support at $35k.”Â
April has so far delivered 15% losses on BTC/USD, the worst month of April in Bitcoin’s history, data from on-chain monitoring resource Coinglass shows.
BTC/USD monthly returns chart (screenshot). Source: Coinglass
BTC/USD has so far managed to avoid a drop below liquidity at around $37,500, but Cryptotoad is not the only one arguing that this could now become a near-term chart focus.
Jordan Lindsey, founder of trading firm JCL Capital, flagged $35,000 as one of what he sees as just two important “big technical levels.”
“The only two levels that matter now in Bitcoin. $35k is channel support and below is major technical breakdown. Price is technically bullish since $38k on Feb 4th posted on this account and neutral since $53k breakdown. Everything else has been noise,” he told Twitter followers Friday.
BTC/USD annotated chart. Source: Jordan Lindsey/ Twitter
Should that drop materialize, it would place Bitcoin not so far from last week’s worst case scenario target of $30,000, described as both an “ultimate bottom” and a likely level to reach by June.
“Decent relief” could follow spot level retention
Adopting a more optimistic view, meanwhile, fellow trader Credible Crypto argued that avoiding the sub-$37,000 dip places Bitcoin in a stronger position.
Related:Â $27K ‘max pain’ Bitcoin price is ultimate buy-the-dip opportunity, says research
“If we can hold here we should see some decent relief,” he tweeted Saturday alongside a chart illustrating the prognosis.
“As per my last update I can see valid arguments for both but give the edge to the bullish scenario due to wave structure. Easy invalidation at 37.7k, if we hit that expect a flush into the orange region and 36k’s.”
At the time of writing, with around 12 hours left until the close, BTC/USD traded at $38,600.
BTC/USD annotated chart. Source: Credible Crypto/ Twitter
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.