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Bitcoin 'buy' signal excites as dollar, gold extend losses, BTC price heads past $41.5K

Bitcoin 'buy' signal excites as dollar, gold extend losses, BTC price heads past $41.5K

All Cryptocurrencies

by COINS NEWS 54 Views

Bitcoin (BTC) closed above a crucial level into April 20 as the daily chart offered a long-awaited “buy” signal.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader: Bitcoin is a buy at $41,500

Data from Cointelegraph Markets Pro and TradingView confirmed a daily close at $41,500 on Bitstamp for April 19.

The sustained gains and strong performance meant that fresh upside should be incoming, according to one trader eyeing a buy/sell indicator on daily timeframes.

The macro atmosphere was also in Bitcoin’s favor on the day after the U.S. dollar encountered resistance to its own bull run.

The U.S. dollar currency index (DXY) reversed after hitting 101 on April 19, its highest level since April 2020.

“DXY correction as expected, fueling the BTC bounce,” popular trader Crypto Ed responded.

U.S. dollar currency index (DXY) 1-hour candle chart. Source: TradingView

Gold, too, faced teething problems, losing 2.6% from its $1,998 highs from earlier in the week.

XAU/USD 1-hour candle chart. Source: TradingView

BTC price action, however, stayed near the daily close, with fellow trader and analyst Rekt Capital predicting incoming turbulence on longer timeframes.

“Bollinger Bands are tightening on price,” he told Twitter followers, referring to the Bollinger Bands volatility indicator on the weekly chart.

“This signals increasing price compression which usually precedes sharp volatility.”
BTC/USD 1-week candle chart (Bitstamp) with Bollinger Bands. Source: TradingView

No shortage of on-chain “buy the dip” signals

On-chain metrics were just as positive on the day, with several covered by Cointelegraph continuing to suggest a bottoming structure had already been completed.

Related: Bitcoin hodlers targeting $100K is what’s preventing 40% price drawdown, data suggests

Among them was Bitcoin’s “Reserve Risk” chart, now firmly in its launch zone in what has historically preempted the start of bullish phases.

When it first returned to the target zone, analyst Philip Swift described it as being in “btfd territory.”

More formally, those buying BTC at current Reserve Risk levels have had a better chance of securing "outsized" returns in the long term.

Bitcoin Reserve Risk chart. Source: Glassnode

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.


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