Bitcoin Price Analysis: BTC/USD Steadies Above $6,600 But Exchange BTC Deposits Keep Falling?

By John Isige
Published April 16, 2020 Updated April 16, 2020
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BTC/USD price chart
BTC/USD price chart by Tradingview

Bitcoin Price Analysis: BTC/USD Steadies Above $6,600 But Exchange BTC Deposits Keep Falling?

By John Isige
Published April 16, 2020 Updated April 16, 2020
  • Bitcoin deposits fall on both Bitfinex and BitMEX but transfers to exchanges are at the same level as those in mid-2019.
  • Bitcoin price embraces stability above $6,600 in preparation for lift-off to levels above $7,000 ahead of the May halving.

Bitcoin has spent the week trying to recover from the fall it encountered last week amid a drop from $7,441 (on Coinbase). The digital asset took a breather above $6,500 and even recovered topping levels past $6,900. However, it has become increasingly difficult to sustain gains towards $7,000.

For this reason, another lower correction on Wednesday forced Bitcoin below various support areas $6,800 and $6,600. The bearish keg extended under $6,500 before finding refuge at the 38.2% Fibonacci retracement level taken between the last swing high at $10,567 to a swing low $3,854. A shallow bounce from this level catapulted BTC/USD above $6,600 but the next short term hurdle at $6,700 is still standing in the way.

In spite of the fall to levels marginally below $6,500, Bitcoin buyers have managed to remain in control and even reclaimed support above $6,600. At the moment, the focus is still on breaking the resistance at $7,000 and pulling BTC/USD above $8,000 as we approach the May 2020 block reward halving.

Bitcoin Deposits On Exchanges Dwindle

Exchanges are experiencing a drop in the number of cryptocurrency assets in their custody. Particularly, Bitfinex and BitMEX have seen a significant fall in the last few weeks. Intriguingly, the transfers made to exchanges have not been altered much; they remain at par with those in mid-2019.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Meanwhile, Bitcoin is likely to enter into a consolidation period above $6,600. The RSI downward slope has slowed down and if levels around the average (50), then sideways action could take center stage. The support at the 38.2% Fibo is expected to remain in place as long as other technical levels such as the RSI and the MACD maintain stability. Gains above $7,000 are still possible heading into the halving event.

Bitcoin Intraday Key Levels

Spot rate: $6,664

Relative change: 48

Percentage change: 0.73%

Trend: Bullish bias

Volatility: Expanding

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1154 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

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