Price Analysis

Bitcoin Price Inclines Towards the Major Support Around $8,000

Bitcoin (BTC), at the time of penning down this article, was trading at $8,108 on Bitfinex. The price of BTC is currently seen correcting downwards from its fresh 30-day high at $8,396.74. However, the coin is gaining utter support from the daily moving averages as it has been trading above $8,000 persistently for the third day in the row. Other than the demand factor that works for the crypto market, the algorithm is such that the halving of the currency happens every four years which also leads to a price change.

While we are in the year of BTC halving (May 2020), a price pump is likely to take place as per the historical trends observed. As per history, as the scarcity of anything takes place, the price is likely to rise and lure massive demand. This year Bitcoin halving will lead to 6.25 from 12.5 BTC and we believe that even though the history does not repeat but will rhyme.

Bitcoin Price Analysis

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BTC/USD Chart By TradingView

Analyzing the hourly movement of BTC/USD on Bitfinex, we see that the coin has been maintaining a persistent move above $8,000. However, as the price of Bitcoin is falling close to each passed support, we see the trend narrowing down. If the price slips even further, the investors are advised to go short with their investments and plan a stop loss below all the imminent daily MAs providing support at present. The medium-term, i.e., 50-day MA, is moving close to the current trading price and is likely to actively support the coin from falling below $8,000 as per the current momentum. The 20-day Bollinger Bands laid are also seen moving with an acceptable band width and we do not see volatility in the upcoming days.

Technical Indicators

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The technical indicators laid confirm the bearish intraday turn of Bitcoin as the MACD is overridden by the signal line and is moving adjacent to zero or Baseline.

The RSI of the coin is at 50.79 and withholds no extremities at present.

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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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