Bitcoin Halving Fails to Conjure Bulls above $7k, Leading Analyst Calls it Quits


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Bitcoin Halving Fails to Conjure Bulls above $7k, Leading Analyst Calls it Quits

Bitcoin [BTC] price drops over 7% towards the end of the last day as it fails to hold support above $7000.

The weekly closing in Bitcoin was around $6910, as the price dropped further from support to test lows at $6550. The closing candle – a shooting star, was bearish as well. Currently, the price is also trading below the mid-line between the 50 and 200-period at $6850.

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

Nevertheless, the CME gap might be a short-term bullish indicator as the traders might look to refill it to $7290. On a daily scale as well, the price rejected from the 50-Day EMA (Exponential Moving Average) which has turned into resistance at $7200.

btc futures cme gap
BTC Futures Price on CME (TradingView)

The price of Bitcoin [BTC] at 5: 00 hours UTC on 13th April is $6710.

Peter Brandts’ Deleted Tweeted

With less than a month left to halving, this is the first time Bitcoin [BTC] will be going into halving with bearish momentum.

The Relative Strength Index (RSI) market indicator, developed by J. Welles Wilder, a momentum indicator is below 50, heading towards the oversold region. In the past, this close to halving (blue and red dots) the price has had a greater bullish inclination.

Moreover, the current macroeconomic environment with the Coronavirus crisis upon the world fundamentally strengthens the argument for Bitcoin use. The economic stimulus from the Governments and the Federal Reserve has had believers promoting decentralization and constant supply of Bitcoin.

However, lately, BTC has shown a stronger correlation with the stock markets, than with safe-haven asset like Gold.

Veteran trader and chart analyst, Peter Brandt tweeted a bearish chart as the price broke below support confirming the bearish ‘head and shoulders pattern.’ However, he soon deleted the tweet due to the ‘obnoxious’ behaviour of Crypto Twitter. The contents of the tweet are,

There is an old adage in trading.

Markets that won’t rally when they have all the reasons to rally are markets can’t rally.

peter brandt chart on bitcoin
BTC/USD Price Analysis Chart (Source: Deleted Tweet)

The target of the break from support is around $5,900-$6,000.

Do you think the bulls will be above to revive the belief towards Bitcoin or it faces a further existential crisis? 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 1181 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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