Bitcoin reaches a critical juncture as BTC price stands at $28.8K, according to the creator of Bollinger Bands.

Bitcoin (BTC) dipped below $29,000 on April 20 as bulls encountered challenges in maintaining ground regained in March.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Will $30,000 become Bitcoin’s latest “Bart Simpson”?

Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was approaching $28,800 on Bitstamp.

Previous wicks below $28,600 were swiftly purchased, yet Bitcoin still posed a risk of turning $29,000 into resistance for the day, as traders focused on a vital support area.

$BTC / $USD – Update
Currently on support, so I am scalping a long while we stay above the lows at $28,550 on a 4-hour closure.
We’ll see how this unfolds today pic.twitter.com/qsjmVn2kb9

— Crypto Tony (@CryptoTony__) April 20, 2023

“While the Bitcoin market is undergoing a correction, the average transactor continues to take profits,” Checkmate, the lead on-chain analyst at Glassnode, stated in part of a Twitter analysis.

“This suggests to me that assets are still being removed from the market, and we have not yet seen a complete exit of top buyers (similar to March).”

Checkmate further noted that he was anticipating realized losses to take precedence as a sign of “panic” among those who acquired BTC when it surpassed $30,000 earlier this month.

An accompanying chart illustrated the Adjusted Spent Output Profit Ratio (aSOPR) metric, which reflects the overall profit and loss of on-chain transactions.

Bitcoin aSOPR chart. Source: Checkmate/Twitter

Some analysts maintained a more optimistic perspective, with Matthew Hyland highlighting one-month lows in Bitcoin’s relative strength index (RSI) on daily timeframes.

RSI provides insight into how overbought or oversold BTC/USD is at a specific price point, and while still relatively elevated, such a reset and subsequent reversal can indicate a potential upward trend.

#Bitcoin Daily RSI now at its lowest level since BTC closed at $24,200 over a month ago pic.twitter.com/JjGd7IqVJ5

— Matthew Hyland (@MatthewHyland_) April 19, 2023

In another observation, popular trader and analyst Jelle noted a mimicking pattern by BTC/USD, which closely followed a price fractal from 2020.

This ultimately formed a so-called “Bart Simpson” pattern — a rise, followed by a plateau and subsequent decline — only to eventually break out even higher afterward.

“$28,800 has been acting as a bottom so far. If we can maintain this level for the next week or so – I anticipate a breakout above $30,000 soon after,” Jelle projected.

BTC/USD chart fractal. Source: Jelle/Twitter

BTC price returns to “logical place”

With volatility returning to BTC/USD in recent days, John Bollinger, the creator of the Bollinger Bands volatility indicator, advised caution.

Related: Is Bitcoin overbought or oversold? Use Bollinger Bands to find out!

Bitcoin, he remarked on the day, had retreated from its upper Bollinger band, foregoing a breakout beyond it.

“Bitcoin just pulled back to its middle Bollinger Band and its previous breakout level. We refer to this as a logical place. Time to Pay Attention!” he tweeted.

BTC/USD 1-day candle chart (Bitstamp) with Bollinger bands. Source: TradingView

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This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making a choice.