Bitcoin Price Analysis: BTC/USD fails to stay above the $7,500 level as market remains fearful
BTC/USD dropped from $7,510.78 to $7,477.75 as the bears took control after four consecutive bullish days. The price has encountered resistance at the upper curve of the 20-day Bollinger Band. The Bollinger jaw is widening as well, which indicates increasing price volatility. The Elliott Oscillator shows three straight green sessions. The $7,373 support level needs to hold strong to prevent further downward movement.
The 4-hour chart is trending in a flag formation as bulls and bears engaged in a back and forth. The bulls failed to breach resistance at $7,586.92 and then later on at $7,534.30. The MACD line is about to cross over the signal, indicating a reversal of bullish momentum. The RSI indicator is trending along the edge of the overbought zone.
The hourly breakdown of BTC/USD is trending horizontally as well. The SMA 20 curve has held steady as the price repeatedly struggled to break past it. The 20-day Bollinger Band has narrowed considerably, which shows decreasing price volatility. The Elliott Oscillator shows increasing bearish market sentiment.
Image Credit: Alternative.me
As per the fear and greed index, the Bitcoin market is presently going through a period of extreme fear. This shows that the asset is heavily undervalued right now and may soon experience a bullish resurgence.
Max Keiser Doubles Down on His $400,000 Bitcoin (BTC) Price Prediction
Max Keiser is not backing down from his eye-popping $400,000 Bitcoin (BTC) price prediction
RT regular Max Keiser has just reiterated his $400,000 Bitcoin (BTC) price prediction, which he made before the global economy descended into mayhem due to the coronavirus pandemic.
The Keiser Report host is also certain that gold can shoot up to $10,000, which would be nearly a five-fold increase from the current all-time high of the yellow metal that was set in September 2011.
As reported by U.Today, Keiser revealed his new Bitcoin (BTC) price target during his explosive conversation with America’s number one conspiracist Alex Jones.
Keiser believes that only gold and Bitcoin make sense for investors that were caught off-guard by the COVID-19 crisis.
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at [email protected]
Author: Fri, 04/24/2020 – 19:37
Market Wrap: Bitcoin Steady at $7.5K as Short Sellers Back Off
Since Thursday’s jolt in bitcoin prices, the cryptocurrency has traded in a tight range close to the $7,500 level. It has not only come back from the losses suffered in March, it’s also showing some upward momentum.
The price for one BTC is currently above 10-day and 50-moving averages on the daily charts, a bullish technical signal. “Despite the mid-March 2020 bitcoin sell-off when we saw a close to 50 percent drop, it has now, within a month, recovered 95 percent,” said Antoni Trenchev co-founder of crypto lender Nexo.
Thursday’s jump in bitcoin price, briefly as high as $7,800 on some spot exchanges, hurt short sellers in the crypto derivatives market. Those trades betting on crypto prices going downward have not returned to derivatives exchanges like BitMEX, said Vishal Shah, an options trader and founder of exchange platform Alpha5.
“It’s tough for me to digest that there’s new capital funneling in; it’s likely capital within the ecosystem sloshing around and targeting pain points,” Shah added. “It feels pretty firm, with the next battle trench likely in the $7,850 – $8,000 region.”
Inflows are needed to push crypto prices higher. Bitcoin’s year-to-date high was $10,510 on spot exchanges like Coinbase back on Feb. 13 and more capital into crypto will be needed to push the markets higher.
“Demand continues to be steady. You have to remember that for bitcoin to stay at these levels, you need inflows of new dollars matching supply of new coins,” said Daniel Masters, chairman of U.K.-based asset manager CoinShares.
That being said, Masters anticipates most investors holding rather than selling ahead of the bitcoin halving in mid-May – with the exception of miners, who need cash to pay for operational expenditures like energy costs and data center leases.
“Analysis of wallets shows most tourists and speculators have sold, meaning we don’t expect many folks to sell into the halving except for miners who may be anticipating some pain around and are trying to lock in opex costs,” said Masters.
As bitcoin remains in sideways trading and price is flat, ether (ETH) has lost less than 1 percent in the past 24 hours.
Losers Friday include zcash (ZEC) off 2.9 percent, stellar (XLM) slipping 1.8 percent and decred (DCR) in the red less by than a percent. All price changes are as of 20:00 UTC (4:00 p.m. EDT).
Oil was in the green Friday, up 1.3 percent as of 20:00 UTC (4:00 p.m. EDT) Friday after a historic week of lows in the spot and futures markets. For the past two months, the fossil fuel has actually been more volatile than bitcoin.
Gold dipped sharply in trading Friday but recovered a bit but is still down less than a percent as of 20:00 UTC (4:00 p.m. EDT).
In the United States, the S&P 500 index climbed 1.3 percent as Federal Reserve data recently published shows its balance sheet has jumped sharply on stimulus.
U.S. Treasury yields are all down on the day as investors jump to the safety of bonds. Yields, which move opposite to price, on the two-year fell by the most on Friday, down 4.7 percent at market close.
The FTSE Eurotop 100 index of largest companies in Europe closed in the red 1.1 percent as hopes for a coronavirus treatment from Gilead Sciences were dashed on a failed clinical trial for the drug Remdesivir.
In Asia Nikkei 225 index closed down less than a percent on news that Japan’s manufacturing output dropped and business sentiment there is at its lowest in seven years.
Author: Zack Voell
“Simple Geometry” Shows Bitcoin is Bound to Drop Despite Healthy Consolidation
- Bitcoin has stabilized above $7,500 following yesterday’s upswing
- Analysts are now noting that a confluence of factors suggest BTC will decline slightly before finding enough support to catalyze continuance of this uptrend
- This comes after a period that some traders have described as “healthy consolidation”
Bitcoin has been able to maintain all of its recent gains overnight, as the benchmark cryptocurrency has begun stabilizing above the $7,500 region even in spite of the strength of the rejection seen at $7,800 yesterday.
The cryptocurrency now appears to be engaged in a “healthy” bout of consolidation as it establishes greater support around its current price levels, apparently making it poised to see further upside.
Traders don’t seem to believe, however, that BTC is ready to continue pushing higher, as one popular analyst is noting that a confluence of factors seem to suggest that it is bound to decline towards around $7,300 before it climbs higher.
At the time of writing, Bitcoin is trading up just under 6% at its current price of $7,530, marking a notable climb from daily lows of $7,100 that were set just minutes prior to the upswing seen yesterday morning.
This movement led BTC to highs of $7,800 on trading platforms like Bitmex, at which point it faced a strong amount of selling pressure that forced it lower.
Its ability to stabilize within its current price region and even show some signs of wanting to push higher is overtly bullish and may even mark a bout of “healthy consolidation” – according to one analyst.
“Bitcoin – Healthy consolidation on the 4 hour chart after that big push yesterday,” he explained while pointing to the below chart.
This consolidation may not stop Bitcoin from seeing further downside, however, as another analyst noted in a recent tweetthat “simple geometry” and confluence both point to the possibility that the crypto needs to decline towards $7,280 before it extends its uptrend.
“It would make a lot of sense for BTC to test $7283’ish when looking at the hourly, using simple geometry. When we zoom out, we see there is a bunch of confluence on the level further to the left,” he said.
Unless Bitcoin establishes $7,500 as a strong support level, bulls need to garner a significant amount of support if they want to continue pushing higher through the resistance-laced $7,000 region.
Featured image from Unsplash.