Bitcoin’s Gradual Recovery and Market Analysis
Bitcoin’s Price Journey Since Mid-March
Bitcoin (BTC), the world’s leading cryptocurrency, has been on a modest recovery path since mid-March. Although there have been efforts to push the price higher, these have often hit roadblocks, with multiple failed attempts to surpass local resistance levels before any significant breakthrough is achieved.
Current Market Performance of Bitcoin
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As of the latest data, Bitcoin is trading at $86,470, marking a 9.74% decline since the beginning of the year. The price has encountered resistance between $88,470 and $88,200 thrice in the past week, while a support zone has been identified between $86,220 and $86,460.
Long-Term Holder Sentiment
Despite sporadic increases in short positions, long-term BTC holders remain optimistic. Data indicates that these investors have considerably decreased their liquidations since the year began, maintaining a bullish outlook for the future.
Understanding the Bitcoin Rainbow Chart
Bitcoin Rainbow Chart Analysis
The Bitcoin Rainbow Chart serves as a visual representation of investor sentiment, employing a logarithmic growth curve superimposed on price movements. This chart is segmented into nine distinct color-coded zones, each reflecting a specific price range and investor sentiment.
Currently, Bitcoin is positioned in the ‘Still Cheap’ zone, the fourth level from the bottom. A price movement exceeding $92,411 would elevate the cryptocurrency into the ‘HODL!’ zone.
Price Range Insights from the Rainbow Chart
According to the Bitcoin Rainbow Chart, for Bitcoin to remain in the ‘Still Cheap’ zone on April 30, it needs to trade within the $73,358 to $95,164 range. This suggests a potential downside of 15.16% and an upside of 10.05%.
If bullish sentiment prevails, Bitcoin could enter the ‘HODL!’ zone, corresponding to a price range of $95,164 to $125,174 by the end of April. Conversely, a drop below $73,358 would present a more favorable entry point for long-term investors.
Forecasting Bitcoin’s Market Movement
Since the year’s commencement, Bitcoin has predominantly oscillated between the ‘Still Cheap’ and ‘HODL’ zones. Surpassing local resistance or revisiting its all-time high (ATH) price of approximately $108,000 would securely place Bitcoin in the ‘HODL!’ zone. Therefore, a price range of $95,164 to $125,174 appears to be the most plausible forecast by April 30.
