Bitcoin resets bull market BTC price metrics as April dip passes 7%

Bitcoin is resetting multiple key metrics as the BTC price drop flushes out leverage.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin RSI returns to key support

Data from Cointelegraph Markets Pro and TradingView shows BTC/USD currently acting around $66,000 after falling 5% in a single hourly candle.

Bitcoin may be down 7% in April, but a retest of support is already having a cathartic effect on overheated markets.

As Cointelegraph reported, with the latest drop came a major liquidation event — one which, at the time of writing, totaled $400 million for Bitcoin and altcoins combined.

With it, per data from monitoring resource CoinGlass, funding rates started turning negative.

“Prices are pushing lower, and funding rates plummet as a result,” popular trader Jelle commented in a post on X.

“BTC & ETH margined contracts already into the negatives. All leverage must be destroyed before price discovery.”

Crypto funding rate heatmap (screenshot). Source: CoinGlass

In the latest edition of its “Asia Morning Color” market updates sent to Telegram channel subscribers, trading firm QCP Capital acknowledged the significant change in the funding landscape.

“The speed of the move was due to large liquidations on retail-heavy exchanges like Binance which saw perp funding rates go from as high as 77% to flat,” it wrote, adding that “the move brings spot prices right back into the middle the 60-72k range.”

“While perp funding has compressed, the rest of the forward curve remains very elevated,” it added.

“Will this be the move that brings the whole curve back down?”

At the same time, Bitcoin’s relative strength index (RSI) readings on daily timeframes are back at the 50 midpoint.

This is an important line in the sand during uptrends, and its preservation has characterized Bitcoin since the end of January.

Bitcoin, as Jelle, among others, notes, delivers its strongest performance with an RSI above 70 — corresponding to an “overbought” signal for price.

BTC/USD 1-day chart with RSI data. Source: TradingView

Bollinger Bands echo $45,000

Turning to volatility, Bollinger Bands on daily timeframes are hinting at a fresh pre-breakout phase for BTC/USD.

Uploading a chart to X, popular analyst Matthew Hyland drew comparisons to February.

“Daily Bollinger Bands continue to tight to levels not seen since the move started from $45k,” he commented.

In late December 2023, Cointelegraph reported on both RSI and Bollinger Bands demanding an acceleration of the bull market.

BTC/USD annotated chart with Bollinger Bands data. Source: Matthew Hyland/X