- A bearish pennant pattern could culminate in Bitcoin price freefall likely to test $5,000.
- Bitcoin halving in May is expected to impact the price positively due to an increase in speculation, volatility and decreased supply.
The cryptocurrency market is facing bearish corrections across the board led by the largest cryptocurrency by market capitalization, Bitcoin. Recently, BTC/USD hit highs close to $7,500. However, increased selling action saw the price make a sharp turn round, testing the support at $7,200. Attempts have been made to pull Bitcoin above the critical $7,400 level but the path of least resistance remains to the downside.
In the meantime, BTC/USD is dancing at $7,281. The price is facing immediate resistance at the 50-day SMA. Analysis of the RSI shows that movement to the north will continue being limited. For instance, the RSI’s recovery from March lows seems to have stalled at 59 (could mark the beginning of a consolidation period). On the other hand, the MACD places the trend slightly in the hands of the bulls.
The formation of a bearish pennant pattern hints that Bitcoin investors have to prepare for a possible breakdown likely to retest $5,000 level. The only way to avert this fall would be to push Bitcoin above $8,000 heading into the May 2020 halving event.
Halving refers to the reduction of rewards per block miners receive. For Bitcoin, the event will slash the reward by half from 12.5 BTC to 6.25 BTC. It is expected to affect the supply of Bitcoin. At the same time, speculation, increased volatility, and demand could result in a rally pushing Bitcoin above the resistance at $9,000 and $10,000.
BTC/USD daily chart
-637220053540852108.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Lukas Enzersdorfer-Konrad, Bitpanda deputy CEO: “Crypto needs Gary Gensler gone”
Lukas Enzersdorfer-Konrad is the deputy CEO at Bitpanda, a broker based in Europe with more than five million users. At the European Blockchain Convention held in Barcelona, the executive shared with FXStreet his views on the current state of the crypto industry and its regulation.
Bitcoin still consolidates despite positive spot ETFs demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
Why is ONDO’s price outlook bullish?
DefiLlama data shows that Ondo TVL reached a new ATH of $613.75 million. Ondo’s Supply Distribution metric shows whale accumulation. On-chain data shows that ONDO’s daily trading volume is rising, and the supply of exchanges is decreasing.
Maker price eyes a rally on technicals and on-chain metrics
Maker trades above $1,500 on Thursday, suggesting a potential rally as technical indicators show bullish divergence. This positive outlook is reinforced by MKR’s Exchange Flow Balance, which shows a negative spike, indicating growing investor confidence in the platform.
Bitcoin: Fed-led rally could have legs towards $65,000
Bitcoin is poised for a second consecutive week of gains, supported by the recent 50-basis-point cut in interest rates by the Federal Reserve. Bitcoin broke above several key technical resistances this week, signaling a rally continuation.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.