October 29, 2020

Bitcoin Price Analysis: Risk of a major dump on the rise!

2 min read

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Bitcoin Price Analysis: Monday 20th April, 2020

What happened after our Bitcoin update on 13th April?

Bitcoin is trading at pretty much the same level seen last week, which isn’t really a bullish sign at all.

We saw BTCUSDT dip to an intra-day low of $6,468 on Thursday, temporarily breaching support of the rising wedge formation, before encountering a new wave of buyers that momentarily helped prop up the price through that stubborn 50-day simple moving average.

Nonetheless, buying momentum seemed to run out of steam rather quickly, with sellers between $7,260-$7,290 on Saturday and Sunday halting Bitcoin’s progress and consequently dragging it back towards the $7,000 level.

So far today, we are seeing Bitcoin struggle to maintain ground at the $7,000 level (again). And all of this price action is happening with lower weekly trade volumes, as may be seen in the main chart above.

So where do we stand from here?

The daily chart (below) shows the price of Bitcoin trading above the 50-day simple moving average of $6,870. If you recall from last week’s commentary, Bitcoin had struggled a lot around this level so it would be really interesting to see whether buyers start to resurface to rescue Bitcoin.

Should buyers fail to re-emerge around the $6,870 level, then there’s still some hope of a recovery with all eyes turning to the 200-period moving average of $6,670 on the 4-hour charts (below).

Failing to attract buyers around the $6,670 region could spell big trouble for the bulls, unfortunately. In which case, you may want to revisit the technical price objectives identified in our previous commentary as the risk of massive sell-off unfolding rises exponentially.

In the greater scheme of things, anything can happen. There are many permutations of how this can pan out for Bitcoin. Nobody has a crystal ball! As always, trade safely, and at your own risk.

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The next Bitcoin commentary will be published on Monday 27th April 2020.

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