Bitcoin Could Drop To $30K In 2 Weeks, Trader Warns As Gold Goes For $2K High

Bitcoin (BTC) is due for a relief rally, but it still faces a decline to $30,000 before May, according to a new research released on April 18.

$30,000 Bitcoin dive is April “risk”

After losing $40,000 support overnight into Monday, BTC faced thin liquidity in the absence of United States and European equities trading thanks to the Easter weekend.

For popular trader Crypto Ed, a near-term retreat should bottom out at $37,500 before a rebound kicks in.

“First need to reclaim $40,000; if we manage that, it’ll certainly give a bullish impulse to the market,” he said in his latest YouTube update.

Should that happen, $43,000 could figure as the local high, but going forward, the picture looks bleak. Using Elliott Wave analysis, Crypto Ed predicted a repeat of recent downside moves interspersed with a brief relief bounce. The target, he concluded, was $30,000.

“That’s the risk for the coming, let’s say, two weeks,” he added.

Popular Twitter account BTC Jack likewise called for the coming weeks to act as a moment of reckoning for longer-term price action.

Gold strikes out as crypto correlation wanes

Despite BTC coming under pressure, there was no sense of pain for safe haven gold on Monday.

After climbing throughout the past week, XAU/USD crept up on the $2,000 mark again, coming within $2 of the resistance level before retreating to around $1,990.

Nonetheless, the pair traded at its highest since March 11, giving the U.S. dollar’s own strength a run for its money.

“A 50-day correlation coefficient for Bitcoin and gold is around minus 0.4, the lowest since 2018,” journalist Colin Wu noted about the implications of gold and Bitcoin’s diverging price performance.

“For now, Bitcoin remains tightly correlated with the Nasdaq 100 index. The Nasdaq 100 is down about 15% this year, while bitcoin has shed some 16%.” 

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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