We are now halfway through April and bitcoin has crossed $31,000 for the first time in 10 months. This increased bullish sentiment comes as global inflation continues to fall and many expect central banks to quickly pivot from their current tight monetary policies.
Current Market Conditions
April started off with near consolidation as traders continued to digest last month’s bank crash and the Federal Reserve’s 25 basis point rate hike.
However, bulls began to re-enter the market after March nonfarm payrolls fell to 236,000 from 326,000 the previous month.
Then inflation data was also released, with Chinese consumer prices hitting an 18-month low, which sent bitcoin above $30,000 again.
In the U.S., prices also fell, dropping to 5% in March, and retail sales fell.
Outlook for April
These factors have boosted bitcoin so far, pushing its price above $31,000 for the first time since last June.
One of the triggers for this move was the breakout made by the 14-day Relative Strength Index (RSI).
The bulls crossed the 68.00 ceiling and went deep into overbought territory by hitting a peak at 72.44.
January rallied to a high of 89.00, meaning that despite being overbought, there is potential for further gains as the month progresses.
However, if the RSI falls below the aforementioned support at 68.00, the bears could begin to emerge again.
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