The Bitcoin Market Is Trading At A Key Level For The Bulls

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The Bitcoin Market Is Trading At A Key Level For The Bulls

The Bitcoin Market Is Breaking Down

The Bitcoin market did not rally from the $9,000 level as expected. On the contrary, the world’s leading cryptocurrency broke through support and looks like it could take another plunge. The token is undergoing an intense round of profit taking that, I think, is lingering HODL’rs leftover from the 2020/2020 rally getting out as quick as they can. I don’t blame them. I too have some positions leftover from that time period that I would like to get out of, the difference is I am content to wait for the big money I know is on the way.

When I say big money I mean at least a retest of the all-time high for Bitcoin and most other major cryptocurrencies. There are a number of catalysts that will drive these highs, the only question is when they will materialize. The one I know for certain is coming and the exact date it will happen is the Bitcoin halvening. The halving is scheduled for May 14 2020 at block number and will greatly reduce the number of available BTCs coming from the mining community.

If you doubt the power of the halving on BTC prices take a look at this chart, it compares BTC’s performance YTD with that of LTC and ETH. LTC underwent a halving, ETH did not, and it is clear in the chart that LTC outperformed all major markets. Next spring, when BTC halves, there will be a pre-halving rally the likes of which we’ve never seen. Two factors that underscore my point are BTC hash rate and dominance, both of which just hit new all-time highs. This shows more miners are working harder than every before to get a piece of Bitcoin BEFORE the halving. Holders mean supply is limited, increased difficulty means value goes up, the combination equals rally.

Until then, traders are cautioned to avoid overly bullish trades until a clear entry signal is given. Until that happens, traders should be looking for support targets that are the likely targets for the aforementioned entry signals. My targets are $7,800, $6,100, and $5,000. The BTC/USD is currently sitting on $7,800 but price action is bearish. A bear flag is forming so I don’t expect it to hold. A fall below $7,800 is likely to go to $6,100. If I’m wrong and support at this level holds, a move up to retest $9,400 is the most probable scenario.

Bitcoin (BTC) Bulls Have to Hold This Key Price Level to Prevent Another Major Drop

Interest per week

Interest per year

The cryptocurrency market continues to see a lot of indecision as bulls and bears continue to wrestle over control. However, if Bitcoin breaks below $6,000 once again, the latter could score a resounding victory.

Playing tug-of-war

Trader Big Cheds recently tweeted that the bulls were ‘working hard’ to hold the $6,000 level. The top coin is currently changing hands at $6,139 at press time.

The bears did manage to push the price lower on multiple occasions today, but they are yet to get behind the wheel.

Back to $4k?

If the BTC price breaks below the above-mentioned once again, it will most probably resume its downtrend, according to trader Cred. After that, he expects the orange coin to be stuck within its previous intraday range.

As reported by U.Today, BTC rocketed to nearly $7,000 on March 20, but this move was followed by a 20 percent pullback.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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The Fate of Bitcoin’s Bull Market Rests on This One Key Level

Bitcoin (BTC) has been caught within a firm bull market throughout 2020, which has allowed the cryptocurrency to garner some notable momentum that led it to climb from year-to-date lows of $6,800 to highs of $9,200.

Although BTC has struggled to break above the lower-$9,000 region, it is important to note that the cryptocurrency has been able to hold above its key support levels, but bulls need to continue ardently defending these near-term support levels if the crypto is to see any further upwards momentum.

One prominent analyst is now noting that one of these key levels exists at $8,472, and that a daily close beneath this level could mean that the bull market has been invalidated.

Bitcoin Struggles to Gain Momentum After This Weekend’s Drop

At the time of writing, Bitcoin is trading down just under 1% at its current price of $8,640, which marks a slight decline from daily highs of $8,750 that were set yesterday when bulls attempted to catalyze some upwards momentum.

In the near-term, it does appear that BTC’s tight trading range has a lower boundary at $8,500, as this is where the cryptocurrency bounced at on multiple occasions during its latest bout of sideways trading.

Nik Patel, a popular cryptocurrency analyst, shared his thoughts on Bitcoin’s recent price action in a blog post, telling readers that the fate of Bitcoin’s recent bull market may hinge on it holding above $8,472, as a close below this could mean that a bear market will ensue.

“Whether price falls off for the remainder of the week…is uncertain for now, as we have not yet closed below the resistance turned support at $8472 – this level giving way would be my primary indicator that the rally is likely over, at least short-term,” he explained.

What Level Does BTC Need to Break Above to Spark a Further Uptrend?

Patel further goes on to note that the key level Bitcoin needs to break above in order for it to further extend its recent momentum exists at roughly $9,090, which could catalyze a movement to its heavy resistance zone at just below $9,500.

“If, however, we see price begin to retest that $9090 level this week, I expect we may see some further continuation into the heavy resistance zone between it and $9470,” he notes.

Although Patel believes that BTC will face a rejection at this resistance zone, it is imperative that bulls continue absorbing the heavy near-term selling pressure, or else the long-term significance of this rally could be nullified.

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has covered bitcoin and the crypto markets since 2020.

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