Bitcoin Price Analysis: BTC/USD stable above $5,000, why investors Remain unbothered?
|- Bitcoin stability is given a blind eye by the investors who are still shaken by the crash caused by the Coronavirus pandemic last week.
- Recovery is needed above $6,000 to pave the way for more action leading towards $7,000 but BTC/USD is not technically ready.
Spot rate: $5,394
Relative change: 58
Percentage change: 1.22%
Volatility: Low
Trend: Short term bearish bias
BTC/USD 4-hour chart
Bitcoin price is starting to range above $5,000 with an immediate upside limit of $5,500. The newfound stability follows recovery from Monday’s dip under $5,000. However, the bulls lack the energy to sustain gains above $5,500 let alone tackle the critical level at $6,000.
In spite of the stability, investors appear to be shunning the market preferring to watch from the sidelines. The drop last week saw Bitcoin’s safe-haven ‘coat’ split into pieces. Moreover, the fear regarding the spread and impact of COVID-19 continues to keep more investors off both the digital and traditional markets.
Technically, Bitcoin price ranging action is likely to take precedence in the coming sessions. The RSI is currently horizontal at 50 (indicator’s average). To pave the way for significant price movement north, BTC/USD has to overcome the selling pressure at the 50 SMA ($6,000). $7,000 remains to be a psychological but a critical level too; while the 100 SMA is holding ground at $7,398 (resistance zone).
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.