After a week of volatility, Bitcoin (BTC) continued to trade in a limited range of around $30,000 over the weekend.
BTC began the week around $28,300, but investors were able to drive the price to a new 10-month high of $30,900 by Friday. Since then, however, the price has retraced, and BTC has been fluctuating between $30,100 and $30,500. Despite this, BTC’s market valuation has increased consistently from $318.5 billion to $586.8 billion.
Ethereum (ETH), on the other hand, has been comparatively calm and has remained around $2,100 after gaining over 13% over the past week, in part due to the recently completed Shanghai upgrade. The cryptocurrency market has been relatively stable in recent days, with the majority of altcoins following Bitcoin’s lead. The reduced trading volume over the weekend has also contributed to the market’s tranquility.
In the meantime, as bears and bulls continue to duel along a crucial multi-year support-resistance zone, well-known crypto analyst “Ali” warns Bitcoin may experience a minor pullback. According to the analyst, Bitcoin must now overcome a formidable obstacle to surmount the resistance level between $30,270 and $32,150.
“The resistance between $30,270 and $32,150 remains a formidable obstacle for Bitcoin, as 770K addresses purchased 360K BTC,” tweeted Ali on April 16.
Ali advised caution if this level of support is breached, as the next important support is between $27,600 and $28,450.
This suggests that BTC may experience some short-term downside pressure. Ali’s analysis reveals, despite this, that many investors are still prepared to purchase the cryptocurrency at the current price, indicating underlying support.
In a previous tweet, Ali noted that the Stock-to-Flow Ratio Multiple (SORP), an indicator with a strong track record of signifying the beginning of bull markets, suggested Bitcoin would experience exponential growth.
“Another Bitcoin indicator suggests a meteoric rise! Historically, aSORP (90d) values below 1 indicate a bear market, whereas values above 1 indicate a bull market. In 2015, 2019, and 2020, it resulted in gains of 6,110%, 150%, and 579%. aSORP has recently moved above 1, indicating that $BTC is poised to soar,” he wrote.
Another crypto analyst, Mulder Sonny, predicts that Bitcoin will surpass $85,000 by June 30. In a Sunday tweet, the expert speculated that Bitcoin’s price could replicate the price action of 2015 if the current quarter performs well, potentially resulting in a new all-time high or “blow off top” although this was not yet certain.
According to CoinMarketCap, Bitcoin was trading at $30,331 at press time, a decrease of 0.28%. Similarly, Ether remained unchanged at $2,090 after a 0.54% decline during the same period.
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