Bitcoin returns to $ 56K while Dogecoin’s price stops at 420% weekly gains

Bitcoin (BTC) saw a solid comeback on April 20 as fresh bullish news from PayPal coupled with solid on-chain indicators.

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

# Doge420 is aiming for $ 4.20 Dogecoin

Cointelegraph Markets Pro and TradingView showed that BTC / USD bounced to $ 56,000 during trading on Tuesday hours after hitting local lows of $ 53,300.

With volatility still remaining, the pair nonetheless looked increasingly reliable above USD 52,000, a significant support zone and the bottom seen in last Sunday’s flash crash from all-time highs.

The news that PayPal-owned payment company Venmo had launched cryptocurrency buying and selling on its app appeared to support the recovery. On the other hand, a social media-induced “Dogecoin Day” put additional pressure on Bitcoin’s immediate upward outlook as money continued to flow into DOGE to the day.

As Cointelegraph reported, the goal of the “celebration” is to launch DOGE / USD to $ 4.20 to coincide with the date and week when SpaceX “Technoking,” Elon Musk, promises “a literal Dogecoin on the moon. to put on “with its latest rocket launch.

The hashtag # Doge420 was trending on Twitter at the time of writing, with DOGE / USD trading at just over $ 0.38, coincidentally up 420% in a week but flat on the day. US traders had yet to wake up, leaving the outlook for profit open later in the day.

RSI indicator tells BTC bulls to keep faith

Back in Bitcoin, meanwhile, traders looked to one indicator in particular, which signaled both solid support at USD 52,000 and that this week’s dip was now set to rebound definitively.

Stochastic Relative Strength Index (RSI), an expression of RSI’s own strength, hinted that Sunday’s dip was already following the pattern of six previous pullbacks in BItcoin’s current bull run.

As such, daily performance should now see BTC / USD rise from its recent floor and sharpen further upward.

Tradingview account Elliot0511, who uploaded a chart showing the habitual behavior, said in the comments that there was no reason to think this time would be different. It summed up:

“As we can see from the chart, we have a double confirmation that this DIP is nearing the end, we can tell from the fact that in addition to the price bouncing back on the headrest, we also have Stoch RSI at 0 , this only happened 6 times from the start of the bull market and there was always a rebound, I don’t see why the same thing wouldn’t happen this time, the bull market has just started, don’t scare yourself because there’s no reason.

Annotated BTC / USD stochastic RSI vs. spot price chart. Source: Tradingview

Popular Twitter account Income Sharks also highlighted the bottom price level and pointed out the diminishing influx of DOGE that could enable Bitcoin’s comeback.

“If you’re willing to buy a hyped up meme coin at these prices, you should have no problem adding a bitcoin spot here,” it told followers Tuesday.

“Once $ DOGE dumps, we should see a nice recovery. There’s no point talking about a price below $ 52,000 unless it doesn’t stop, and I think it will.”