Bitcoin (BTC) continued to trade in a narrow range over the weekend, around $30,000, after a week of volatility.
BTC started the week around $28,300, but the bulls managed to push the price up to $30,900 by Friday, marking a new ten-month high. However, the price has since retraced, and BTC has been hovering between $30,100 and $30,500. Despite this, BTC’s market capitalisation has continued to rise steadily, from $318.5B to $586.8 Billion.
Ethereum (ETH), on the other hand, has been relatively quiet and has remained around $2,100 after gaining over 13% in the past seven days, partly thanks to the recently concluded Shanghai upgrade. Overall, the cryptocurrency market has been relatively stable over the past few days, with most altcoins following BTC’s lead. The weekend’s lower trading volumes have also contributed to the market’s calmness.
Bitcoin At Crossroads, cautions analyst
Meanwhile, as bears and bulls continue to battle it out along a critical multi-yearly support-resistance zone, popular crypto analyst “Ali” warns Bitcoin could witness a slight pullback. According to the pundit, Bitcoin now faces a significant challenge in surpassing the resistance level between $30,270 and $32,150.
“The $30,270-$32,150 resistance remains a tough hurdle for Bitcoin where 770K addresses bought 360K BTC,” Ali tweetedApril 16.
Ali advised caution if this support level breaks, as the next key support is at $27,600-$28,450. “Meanwhile, the $29,330-$30,200 support holds strong where 700K addresses bought 390K BTC. Be cautious if this level breaks; the next key support is at $27,600-$28,450,” he added.
This indicates that BTC may experience some downside pressure in the short term. Nonetheless, Ali’s analysis reveals that many investors are still willing to buy the cryptocurrency at the current levels, indicating underlying support.
In an earlier tweet, Ali pointed out that the Stock-to-Flow Ratio Multiple (SORP), an indicator with a strong track record of signalling the start of bull markets, hinted at explosive growth for Bitcoin.
“Another Bitcoin indicator hints at explosive growth! Historically, aSORP (90d) below 1 signals a bear market, & above 1 signals a bull market. In 2015, 2019 & 2020, it led to 6,110%, 150%, & 579% gains. aSORP recently moved above 1, suggesting $BTC readies to go parabolic,” he wrote.
Mulder Sonny, another crypto analyst, predicts that Bitcoin could tap $85,000 before June 30. In a Sunday tweet, the pundit suggested that Bitcoin’s price could mimic the price action of 2015 if the current quarter emerges strong, potentially creating a new all-time high or “blow off top”, although it was not a guarantee yet.
At press time, Bitcoin was trading at $30,331, down 0.28% as per CoinMarketCap. Likewise, Ether stayed flat and exchanged hands at $2,090 after a 0.54% drop during the same period.