A spike higher on Wednesday’s Wall Street open is not enough to rescue the trend, one trader warns.
Bitcoin (BTC) saw a welcome break from downside at the Wall Street open on April 13 as United States equities opened in the green.
Sub-$39,000 BTC price target remains
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing to local highs of $40,965 on Bitstamp as trading began Wednesday, its best in over 24 hours.
After a frustrating rangebound period, volatility to the upside was a relief for support levels previously in danger of collapsing.
Traders, however, were not overly optimistic, having eyed lower entry levels for a potential long position.
looking as 39500 / 39k for long area
— EliZ¥ (@eliz883) April 13, 2022
As Cointelegraph reported, popular trader Crypto Ed was also risk-off in tone on the day, previously forecasting a relief bounce before a deeper correction under $39,000.
“I expect a move, let’s say, towards $41,000 and then I think most likely we do get that extra leg to the downside,” he said in a YouTube update published subsequently.
Ed added that the scenario would be invalidated should BTC/USD manage to hold above the $40,500 mark. At the time of writing, the pair was continuing to move towards the $41,000 target.
Video was made >2hrs ago, so I'm adding 1 more short term alternative here which is only a small detail:
I do expect that move to red box, but in case we go down from here, BTC is doing that blue pattern.
Doesn't change the bigger picture pic.twitter.com/3swJrppDlt
— Ed_NL (@Crypto_Ed_NL) April 13, 2022
Macro triggers remained familiar, these coming in the form of inflation after Tuesday’s U.S. Consumer Price Index (CPI) readout of 8.5% for March, its highest since 1981. In the United Kingdom, CPI quickened to 7%, a 30-year high, according to figures from the Office for National Statistics.
Sentiment on the move from 6-week lows
Traders seemed prepared for the bounce, with data showing modest position liquidations for both longs and shorts over the past 24 hours.
Related: BTC stocks correlation ‘not what we want’ — 5 things to know in Bitcoin this week
The dip below $40,000 had conversely cost market participants dearly, with liquidations passing $500 million fueled by longs.
At the same time, sentiment was rising, as calculated by the Crypto Fear & Greed Index, this having reached 20/100 or “extreme fear” Tuesday. Such a low sentiment score was last recorded in late February.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
