Price Analysis

Bitcoin Corrects Downwards Yet Remains an Ultimate Power

Bitcoin (BTC), at the time of writing this analysis, was seen correcting downwards from hitting the major resistance above $8,000 and $8,300. However, the current fall makes us believe the illusionary movement that the coin had over the past 2 days.

However, a persistent break above $8,000 can only lead to some interesting analytics about BTC. Until then, identifying whether the last year has been favorable for the Bitcoin loyalists and investors or not will rightly help the potential investors to binge in the trade of crypto assets.

Crypto assets are famous due to their most ordinary quality of being volatile, which rightly aligns the rule of investing in financial assets viz., ‘Higher the risk, higher the return.’ Accordingly, we have two types of people, i.e., speculators and investors who analyze the traditional markets as well. Therefore, putting the statistics together, Bitcoin has closed the bygone year with the higher year-over-year return when compared with the S&P 500 and Gold (93.80%). Also, Bitcoin has been the most intra and as well inter—an uncorrelated asset with that of S&P 500, Gold and other crypto assets.

Other than this, we also await the Bitcoin halving this year in May, which will rightly correlate with the price of the security. Presently we see less of bearish divergence and more of bullish divergence but collectively hold a neutral approach. Although Bitcoin is becoming a captivating investment tool due to its high return and low volatility comparatively in the global market as per the bygone year’s data fetched.

The current trading statistics and price trend needs a proper direction to rise away from being neutral at present.

Bitcoin Price Today
BTC/USD Chart by TradingView

Analyzing the hourly BTC/USD movement on Coinbase, we see that the coin is seen correcting downwards and is around 61.80% Fib Retracement area. The trendline drawn exhibits an up-trending movement of Bitcoin in the upcoming days, but the intraday dip has led the coin to lose the major supports slightly. With this, the coin loses support from 50-day and 100-day moving averages. There has to be a considerate and persistent bullish crossover for a compelling trade. Although, we can’t underestimate the power of the king of the cryptocurrencies that have fetched massively in the previous year.

The MACD of BTC is running below zero and holds a bearish divergence due to intraday dip, which is believed to take a reversal soon.

While the RSI of the coin also accommodates with the same as it remains inclined to the support at 36.61.

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Mehak Punjabi

Mehak Punjabi is a post graduate in MBA with specialization in Finance and has joined CryptonewsZ with a skill building view in the world of cryptocurrency and blockchain. She is dynamic and a quick learner with a hold on financial analysis.

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