Bitcoin Price Analysis: BTC Remains Stagnant As Block Halving Approaches

Yaz Sheikh Price Analysis published May 6, 2020 | modified May 6, 2020
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Bitcoin Price Analysis: BTC Remains Stagnant As Block Halving Approaches

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  • Bitcoin continues to struggle to break above the resistance outlined at $8,950 this week..
  • The cryptocurrency has been trading sideways over the past 6-days of trading as the Block Halving draws near.

After surging by over 16% throughout the past week of trading, Bitcoin has decided to settle down as it struggles to break the resistance at $8,950. The Block Halving event is just a little over 6 days away now, however, it seems that the bulls are starting to struggle at the aforementioned resistance level.

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Nevertheless, with the BTC Block Halving approaching, we can expect some form of positive price action above $9,000 in the following few days, we just need to be patient as it is only a matter of ‘when’ it will happen and not ‘if’ it will happen.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

BTC chart

BTC/USD chart by TradingView

Market Overview

Taking a look at the daily chart above, we can clearly see the resistance at $8,958 providing solid resistance for the market over the past 6-days of trading. The resistance here is provided by a 1.618 Fibonacci Extension level and BTC has struggled to close above it. It has spiked above it a number of times during the week but the sellers always step back in to push the market lower each time it breaks above $9,000.

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Short term prediction: BULLISH

Despite the sideways action, BTC remains bullish at this moment in time. To turn neutral, BTC would need to drop and fall beneath the support at $8,140. It would have to drop further beneath $7,400 to turn bearish again.

If the sellers do push lower, the first level of support lies at $8,800. Beneath this, added support can be found at $8,500, $8,300, and $8,141 (.236 Fibonacci Retracement level). If the sellers continue to drive BTC beneath $8,000, support can be found at $7,900, $7,700 (100-days EMA), and $7,500.

On the other side, the first level of resistance to breaking is $8,960. Above this, resistance lies at $9,090 (bearish .786 Fib Retracement), $9,163, and $9,500. 

Key Levels

Support: $8,800, $8,500, $8,400, $8,300, $8,000.

Resistance: $8,860, $9,000, $9,090, $9165, $9,500.

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

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Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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