Bitcoin Price Analysis: BTC/USD hangs in the balance, pennant pattern threatens freefall to $5,000

Bitcoin price is seating slightly above $6,900 amid a building bullish bias. The past couple of days have been particularly challenging for Bitcoin buyers as they struggled to sustain the price above $6,800 and $6,900. Moreover, gains towards $7,000 have been unattainable owing to the increasing selling activities.

As Bitcoin continues to seek balance above $6,900, miners and investors are making preparations for the rapidly approaching block reward halving. Google Trends has seen a shift in the increase in searches related to Bitcoin halving. However, the Fear & Greed Index by Alternative.me shows that generally, most people are not convinced that Bitcoin is bullish. A pre-halving rally is possible but it is not guaranteed. At the same time due to the fight against the Coronavirus, it not clear that a post-halving rally will occur.

Bitcoin bearish pennant pattern

At the time of writing, BTC/USD is exchanging hands at $6,910. The immediate downside is supported by the 100 SMA as well as the pennant pattern’s support. It is very essential that this pattern’s support remains intact. Otherwise, a breakdown below it could increase the bears’ confidence and lead to freefall towards $6,000 and even $5,000 by the end of April.

Meanwhile, short term analysis shows that Bitcoin could embrace a consolidation move before a breakout above $7,000 or worse a breakdown depending on the above analysis.

BTC/USD 4-hour chart