At the halfway point of April, bitcoin has risen beyond the $31,000 point for the first time in ten months. This rise in bullish sentiment comes as global inflation continues to fall, with many expecting central banks to soon pivot from current policies of monetary tightening.
Current Market Status
April started mostly with consolidation, as traders continued to digest the last month’s banking crash, and Federal Reserve 25 basis point rate hike.
However, following the non-farm payrolls report, which dropped to 236,000 in March, down from 326,000 the month prior, bulls began to reenter the market.
Since then, inflation data has also been released, with consumer prices in China falling to an eighteen-month low, which pushed bitcoin back above $30,000.
In the United States, prices have also dipped, falling to 5% in March, with retail sales, also edging lower.
These factors have so far helped bitcoin, and led to prices moving above $31,000 for the first time since last June.
One of the catalysts for this move was a breakout, which took place on the 14-day relative strength index (RSI).
Bulls moved past a ceiling at the 68.00 mark, moving deep into overbought territory, by hitting a peak at 72.44.
In January, the index rose to a high of 89.00, which means that despite being overbought, there could still be some further gains as the month progresses.
However, should the RSI fall below its aforementioned support at 68.00, bears could begin to reappear.
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Where will bitcoin end the month? Let us know your thoughts in the comments.