Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
Technical indicators claim Bitcoin price may move up, but the bears are still here. BTC price undergoes a sudden pump right after equity trades ending. Expert sets likely price range, which is within $5,150 and $7,200.
Even though the Bitcoin price moved back, it is running towards a positive trend. Per the daily timeframe, Bitcoin’s price is giving signs of the possible rally to $7,100-$7,200. Per the Bollinger Band moving average, Bitcoin could test $6,400-$6,300 in case the support will break. Traders should be extremely careful and watch buy and sell volumes in the next few hours, says Horus Huges.
Since March 31 Bitcoin price reached a $6,500 level. But during the day, the majority of traders were bearish. Bitcoin fell to $6,100, spawning concerns over the short term movement. Traditional markets had the same bad day, with S&P 500 and Dow indexes dropping hard by 4.41% and 4.44%. The market is in fear of the recent news stories. Coronavirus got 200,000 U.S. citizens ill, this coincides with the White House’s recent prediction of around 240,000 potential contaminations.
The quarantine will stay in effect if the situation won’t get better. Many of the market experts advise that the bottom is far away considering that there is still no cure. After the equities market closing, Bitcoin experienced a slight upwards price action, throwing the currency to $6,744 per coin.
Traders Must Watch the Markets
Such an unexpected rise appears just in time because Bitcoin was going below $6,200 at that moment. If the sloppy head and shoulders pattern would appear finished, the traders will start thinking about moving to $5,150. Such a scenario is doubtful after the recent sharp increase. But is still possible.
During the next few hours, it will be more clear whether Bitcoin is going to retest $6,400. In case it won’t, the price could make waves at the $6,600-$6,900 level. More than that, if the price falls below the 20-MA indicator, $6,200 may appear as the main support level.
Worth noting that some market experts claim Bitcoin is entering the mining capitulation phase. During such days, miners turn off their equipment because mining becomes unprofitable. After the Bitcoin halving which will happen roughly on May 13, the network’s block finding reward shifts from 12.5 BTC to 6.25 BTC.
Such a decrease in minting new bitcoins will hit the pockets of retail miners and suppliers. They will have to look for countries with cheap electricity or close their farms. In some cases, miners even connect farms to the public electricity line to steal from others. If miners abandon the network, the hash rate and the difficulty will drop. In recent months, Bitcoin lost 40% of the hash rate, then gained 30% back after the downwards difficulty recalculation.