Bitcoin (BTC) saw a strong comeback on April 20, 2021, due to new bullish news from PayPal together with strong on-chain indicators. Bitcoin has benefitted from an adoption boost by Venmo, while ‘Dogecoin Day’ so far produces little in the manner of fresh price upside for DOGE.
Doge420 Aims To Sprout A $4.20 Dogecoin
TradingView showed BTC/USD bouncing to $56,000 during the day’s trading, hours after plunging to lows of $53,300. With volatility still existing in the market, bitcoin nonetheless appeared increasingly reliable above $52,000, a considerable support zone and the floor recorded in last Sunday’s flash crash from all-time highs.
News emerged that PayPal-owned payment firm Venmo had introduced crypto buying and selling to its app seemed to underpin the recovery. On the other hand, a social media-induced “Dogecoin Day” was adding pressure to BTC’s immediate upside prospects as lots of funds continued to flow into Dogecoin (DOGE) on the day.
Based on previous reports, the aim of the “celebration” is to launch DOGE to $4.20 to coincide with the date and also the week when SpaceX “Technoking” Elon Musk promises that he wants to “put a literal Dogecoin on the literal moon” with his newest rocket launch.
Twitter saw the hashtag #Doge420 trending at the time of writing, with DOGE trading around $0.40, coincidentally up 420% in a week but flat on the day. The US traders were yet to wake up, leaving the prospect of gains later on in the day open.
RSI Indicator Encourages Bitcoin Bulls
In the meantime, back to BTC traders were eyeing one indicator in particular as signaling strong support at $52,000 and that this week’s dip would now bounce definitively. Stochastic relative strength index (RSI), which is an expression of RSI’s own strength, suggested that the weekend’s dip was already following the pattern of six past pullbacks in BTC’s current bull run.
In that context, daily performance should now see Bitcoin lifted off its recent floor and continue pushing upwards.
Elliot0511, a TradingView account, uploaded a chart showing the recurrent behavior saying in comments that there was no reason to think that this time it would be different. The account summarized:
“As we see from the chart we have a double confirmation that this DIP is almost at the end, we can establish it from the fact that, besides the fact that the price is bounced on the main support, we also have Stoch RSI at 0, this happened only 6 times from Bull market start and there was always a rebound, I don’t see reason why this time the same thing should not happen, the Bull market has just begun, don’t scare yourself because there is no reason.”
IncomeSharks, a popular Twitter account, also highlighted the floor price level and pointed to the decreasing DOGE inflows being apt to fuel BTC’s comeback. It told followers on April 20:
“If you are willing to buy a hyped-up meme coin at these prices, you should have no problem adding some Bitcoin spot here. Once $DOGE dumps, we should see a nice recovery. No point talking about any price lower than $52,000 unless this doesn’t hold, which I think it will.”