Bitcoin regains yearly open as trader says $50K next week ‘might be likely’

Bitcoin (BTC), which was consolidated above the 2022 annual open on April 2, after a brief return to form saw bulls reclaim $47,000.

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

BTC price has “crucial” support for the long-term

Cointelegraph Markets Pro and TradingView data showed that BTC/USD was at $46,600 on Saturday, a clear rebound from long-term support.

Although the pair fell to $44,300 on Friday, it was short-lived because of positive sentiment that dominated the Wall Street open.

Cointelegraph contributor Michael van de Poppe was determined to keep his newly flipped support. The odds of an attack on $50,000 were in favor of him.

He stated that the “Crucial Area held Up for Bitcoin, In Which Continue upwards Seems Likely,” to his Twitter followers.

“If we go back to the $45k price range, it is a sign that we are weak and we will move into the $40k zone.” If we don’t, $50k might be possible next week.

Annotated chart of BTC/USD Source: Michael van de Poppe/ Twitter

PlanB, an analyst who created the stock-to-flow based Bitcoin price models has observed continued strength in Bitcoin’s relative strengths index (RSI).

#bitcoin RSI is rebounding. BTC 25% below ATH level. pic.twitter.com/7mC9oS23Qw
— PlanB (@100trillionUSD), April 2, 2022

Cointelegraph reported that price drops have been accompanied by bullish RSI performances in recent weeks.

Reserve Risk metric remains in the “outsized returns” zone

In March, however, one on-chain indicator began to provide stronger buy signals for BTC/USD.

Related: “Hold my beers” — Terra has already made $165M by buying Bitcoin, as Tesla’s BTC stash is nearing.

After more than four weeks, Reserve Risk, which provides an indicator of when to invest to ensure “outsized” returns over the long-term, was still in its target zone this weekend.

Although there are signs that the trend is up, Reserve Risk suggested that recent price increases were not the end.

Bitcoin Reserve Risk chart. Source: LookIntoBitcoincom. You should do your research before making any investment or trading decision.

https://cointelegraph.com/news/bitcoin-regains-yearly-open-as-trader-says-50k-next-week-might-be-likely