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.
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.
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.
— PlanB (@100trillionUSD) April 12, 2020
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.
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.