Bitcoin (BTC) closed above a crucial level into April 20 as the daily chart offered a long-awaited “buy” signal.
Trader: Bitcoin is a buy at $41,500
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.
Gold, too, faced teething problems, losing 2.6% from its $1,998 highs from earlier in the week.
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.”
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.
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.
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