Last Updated on April 24, 2021
The bullish run of bitcoin in the past 5 months without a correction phase should concern the RaceOption broker because the rally may soon lead to a massive drop. A big move ne’ future. A big move needs levels of support for another swing to the upside for an uptrend to be successful in the market.
BTCUSD Technical Analysis
Monthly Resistance 65 000, 70 000, 80 000
Monthly Support 45 000, 33 000
The BTC has been steady in the bullish rally since the last quarter of 2020 into the new year. The market sentiment has been positively bullish for the investors and other institutions who have adopted bitcoin as another means of portfolio for investments apart from Gold, having seen it rise over 210% in year amid the COVID-19 pandemic.
We may see the 59000 level become a strong zone for the BTC buyers in April because the levels have shown a sign of rejection from the area and may cause the price of bitcoin to drop.
Weekly Resistance 58500, 59500, 70000
Weekly Support 43000, 28850
The weekly time has showed that the $59500-price level is at a resistance zone, having held the bulls surge within that range for weeks, and there is a possibility of long position traders liquidating their orders because of the news about regulating the bitcoin. This will probably influence the price of BTCUSD, which will cause the price to drop as the market reacts to such news.
The 43000 level is a support zone that the price of bitcoin will probably fall to when investors should take profit and also an area where buyer wish to buy from the dip.
Daily Resistance 64850, 70000, 80000
Daily Support 50500, 43000
The Bears at the resistance level have been rejecting the Bulls advancement anytime the price test those levels before the big drop retest the low of 50500. A close below the support will probably expose the 43000 level.
The Bulls are seeing the dip as an opportunity to buy from the lows since the general market sentiment remains bullish. A close above the resistance zone of 64850 will trigger a new bullish surge in the bitcoin market.
Recently, the drop of bitcoin price was because of different factors like the news from the U. S Treasury, and the Chinese blackout. The sudden flash shows the market sentiments of investors, bitcoin brokers and other traders following the news happening around the crypto market. The pullout of funds established a new resistance zone at 64850 in the market, buyers they have to close above the zone for them to continue the bullish trend.
The crypto market is attracting more investors as more firms are accepting crypto payment as part of their services, having seen its benefits amid the COVID19 crisis and the lockdown of businesses around the world.
Bitcoin BTC News Events
The Money laundering report clipped bitcoin price from surging higher, it plunged BTCUSD to the lows of $50000, a drop of 12% at the tweet that the USA Treasury looks to investigate financial institutions for money laundering via cryptocurrencies. The validity of the news was questioned by Jake Chervinsky because the Treasury does not place a levy on money laundering and no official report to such claims.
However, the bearish pressure has been building before the event previously as the Chinese blackout halted the mining operations in Xinjiang region which affected the bitcoin mining hash rate by a 40% drop. This shows the dominance of the Chinese over the market as region in china is affecting almost half of the total hash rate.
Recently, the bank of England and the U.K Treasury created digital currency Task force to help complement its existing system of payment in terms of cash and deposit. This step will also create acceptance of crypto currency in the community.
Conclusion and Projection
The bitcoin price pattern shows a certain formation that’s common on the monthly chart overview, forming a new all-time high followed by a sharp drop before going into a consolidation for some weeks.
Some long position traders believes the drop is another opportunity for them to buy from the dip in other to add more position for gain.