BTC Hits $31,000, What Next? – Bitcoin News
At the halfway point of April, bitcoin has risen above the $31,000 mark for the first time in ten months. This increase in bullish sentiment comes as global inflation continues to fall, and many expect central banks to soon pivot from current monetary tightening policies.
Current market status
April started mostly with consolidation, as traders continued to digest last month’s banking crash, and the Federal Reserve’s 25 basis point interest rate hike.
However, after the non-farm payrolls report, which fell to 236,000 in March, down from 326,000 the month before, bulls started to re-enter the market.
Since then, inflation data has also been released, with consumer prices in China falling to an eighteen-month low, pushing bitcoin back above $30,000.
In the US, prices have also fallen, falling to 5% in March, with retail sales also falling.
Outlook for April
These factors have so far helped bitcoin, leading prices to move above $31,000 for the first time since last June.
During last month’s outlook, BTC traded to a low of $19,628.25 on March 10, and at the time of writing, BTC/USD has now moved to a high of $31,005.61 earlier today.
One of the catalysts for this move was a breakout, which took place on the 14-day relative strength index (RSI).
Bulls moved past a ceiling at the 68.00 mark and moved deep into overbought territory, hitting a high of 72.44.
In January, the index rose to a high of 89.00, meaning that despite being overbought, there could still be some further gains as the month progresses.
However, should the RSI break below the aforementioned support at 68.00, bears could start to re-emerge.
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Where will bitcoin end the month? Let us know your thoughts in the comments.
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