Bitcoin [BTC] Price on Life-Line Support from Long-Term Bullish Trend


Bitcoin
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Bitcoin [BTC] Price on Life-Line Support from Long-Term Bullish Trend

Bitcoin [BTC] price drops heavily on Sunday testing lows at $778x. Despite the growth of the Coronavirus and halving rhetoric, the sell-off in Bitcoin is now threatening an end to the bull run.

The price have reaches at the confluence of the long-term trend-line it has been holding since 2017. Derivatives and crypto traders, Tone Vays tweeted on the price action,

Finally we have #Bitcoin, all bearish targets are back on the table with a Weekly Red 2 under Red 1 while breaking short & intermediate Moving Averages on Weekly Charts. $BTC has never fallen under 200 Week SMA

Moreover, in a bull market, BTC has not broken below support from the 200-Day SMA for long. This got broken yesterday at $8673. The 200-Period Weekly Moving Average is currently at $5900, which will the last stand from the bulls.

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BTC/USD 1-Week Chart on Bitstamp (TradingView)

Previously, when Bitcoin [BTC] price fell to test the bottom of the trend-line, bearish sentiments spread across the market. However, the bulls kept support above it with quick bullish buy-backs which led to the short-term bulls in 2020.

Furthermore, the LucidSAR indicator on the weekly is also converging around the trend-line support at $7995. As mentioned earlier, on longer time-frames, the swing low around $6500 will the penultimate stand for the bulls.

$875 CME Gap

CME records one of the largest gaps since the Xi-pump in October last year. However, the last one opened about $1000 higher. Whereas, the current one logs an $875 (9.5%) gap which is expected to be filled.

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BTC Futures CME Daily Chart (TradingView)

Popular crypto trader, XC tweeted,

Looking like a 10% gap is in store for us here at the CME Open, place your bets on whether it will be filled. $BTC

According to rudimentary research, it has been shown that CME gaps have a high probability of being filled in the same week. However, since the gap is massive, the chances of reaching $9150 this week reduces.

With global economy already holding onto a thin thread, the deadly virus has stretched the world to the limits of a recession. The stock and commodities (oil, gold) market is witnessing massive swings as global trade gets affected. The test for Bitcoin as a safe haven, or an uncorrelated asset – weak or strong is coming through hard.

Do you think Bitcoin can uphold the safe-haven rhetoric during times of social and economic distress? Please share your views with us. 
Author: Nivesh Rustgi
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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Nivesh Rustgi 1180 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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