Bitcoin Price Analysis: BTC/USD recovery capped by short-term trend line, US candidate for Congress says time to sell

• BTC/USD has recovered from the recent low, but further upside may be limited.
• The Republican candidate for US Congress says people will sell BTC for fiat.

In the recent 24 hours, BTC/USD has been hovering around $6,400, mostly unchanged since the beginning of the day. An attempt to settle above $6,500 was unsuccessful as the upside momentum is not strong enough amid the sense of uncertainty on the markets. Bitcoin has lost over 26% in March to trade 10% lower from the start of the year. 

Bloomberg Galaxy Crypto Index flashes first buy signal in the recent 24 months, while cryptocurrency enthusiasts, including Mike Novogratz, urge investors to buy Bitcoin on dips. However, a Republican candidate for US Congress, David Gokhshtein, believes that investors will start selling the first cryptocurrency pretty soon to get some fiat as the recession fears are escalating.

IMHO, we’ll soon see people selling off #bitcoin to put some fiat in their pockets, he wrote on Twitter.

Gokhshtein explained that investors would need some fiat money, so they would start disposing of their crypto assets.

BTC/USD: Technical picture

While BTC/USD has recovered from the recent low of $5,854, it is still moving within a short-term bearish trend currently at $6,560. A sustainable move above this level will improve the technical picture and allow for an upside move towards $7,000. This psychological barrier is reinforced by SMA100 weekly. Once it is out of the way, the upside is likely to gain traction with the next focus on $8,000 with SMA50 located on approach.

On the downside, the local support is created by $6,300 (SMA50 1-hour). If it is broken, the sell-off may be extended towards $6,000 and the recent lo of $5,854.

BTC/USD 1-hour chart

 

---