Bitcoin (BTC) consolidated above the 2022 annual open on April 2 after a return to form in which bulls briefly reclaim $47,000.
BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView
BTC price has “critical” long-term support
Data from Coin-Crypto Markets Pro and Trading Display showed BTC/USD circling around USD 46,600 on Saturday after a clear bounce to long-term support.
The pair had plunged as low as around $44,300 on Friday, but these were short lived as positive sentiment took control of Wall Street’s opening.
For Coin-Crypto contributor Michaël van de Poppe, intent on maintaining the new flipped support, the odds of attacking $50,000 were high.
“Critical area held up for Bitcoin, in which continuation upwards seems likely,” he said In summary to Twitter followers on the day.
“If we revisit the $45k range, I think it’s a sign of weakness and we’re going to go into $40k area. If we don’t, it’s likely to be $50k next week.”
BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter
PlanB, the analyst behind the popular stock-based Bitcoin price models, meanwhile, noted continued strength in Bitcoin’s relative strength index (RSI).
#bitcoin RSI bounces back up. BTC 25% below ATH levels. pic.twitter.com/7mC9oS23Qw
— PlanB (@100 trillion USD) Apr 2, 2022
As Coin-Crypto reported, the bullish RSI performance has been accompanied by price squeezes in recent weeks.
Reserve Risk metric remains in “oversized” return zone
Meanwhile, in the course of March, an on-chain stat started providing increasingly strong buy signals for BTC/USD.
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Reserve riskwhich gives an indication of when to invest to ensure “outsized” returns over time, stayed in its target zone after more than four weeks this weekend.
While Reserve Risk showed signs of rising, it hinted that the recent price gains were not the end of the story for higher time frames.
Bitcoin Reserve Risk Map. Source: LookIntoBitcoin
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