Bitcoin Price Analysis: BTC/USD may retest SMA200 weekly if $6,500 is not retaken any time soon.

  • BTC/USD is moving in the range with a bearish bias, a retest of SMA200 weekly is a possibility now.
  • Bitcoin performed better than stock indices and oil in Q1.

BTC/USD is hovering around $6,300, down 1% on a day-to-day basis. The first digital coin has been moving within a short-term bearish trend amid expanding volatility.

Bitcoin performed better than stock indices 

The first digital coin lost 10% of its value since the beginning of the year. While this may seem as a dismal results, as Bitcoin failed to prove its safe-haven status, other financial markets performed even worse. Thus Dow ended the quarter with a 23% drop, S&P 500 lost 20% down and Nasdaq Composite ended 14% lower. Brent lost 61% since the beginning of the year, while WTI is down 66%.

The rally that started at the beginning of the year pushed major stock indices to new record highs, while Bitcoin hit the area above $10,500. However, the COVID-19 outbreak and an oil price war wreak havoc on the financial markets. Bitcoin failed to perform as a save haven and crashed together with equities and other risk assets.

Experts still believe that Bitcoin is largely an uncorrelated asset, however, it is a relatively small asset class, which makes it vulnerable to big shocks and spikes of volatility. Vijay Ayyar, head of business development at cryptocurrency exchange Luno, commented in the interview with CNBC:

Bitcoin is still a relatively smaller asset class that is increasingly uncorrelated to traditional asset classes and this is in the process of being established as we speak. This is why I believe the current market environment is a big test for Bitcoin and given how young the asset class is, it has actually held up quite well.

BTC/USD: Technical picture

BTC/USD slipped below $6,300 after an unsuccessful attempt to settle above $6,500. While this development worsened the short-term picture, a recovery may be resumed as long as BTC stays above $6,000. This support level serves as a lower boundary of the recent consolidation channel. Once it is broken, the sell-off is likely to gain traction with the next focus on the recent low of $5,854. The critical bearish target comes at $5,600 (SMA200 weekly).

On the upside, the critical resistance at $6,500 is reinforced by the downside trend line. If it is cleared, the recovery may be extended towards psychological $7,000 with SMA100 weekly located just above this area.

BTC/USD weekly chart

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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: BTC/USD is still chasing 10K

Bitcoin is trading well on Monday after some choppy price action over the last four sessions. The bulls just have not managed to have a clear run at the highs in recent session as every time the BTC/USD pair has a bullish close ...

More Bitcoin News

XRP/USD is stuck between a technical rock and hard place

Ripple has been moving higher on Monday as the sentiment in the cryptosphere remains positive. The XRP/USD pair has bounced off the 0.21 resistance point but looks like it could make another run on ...

More Ripple News

Ethereum Chart Update: ETH/USD is fine as long as it stays above daily SMA50

Ethereum (ETH) has been moving inside a range limited by $230.00 on the downside and $240.00 on the upside since Sunday. The coin tested lows at $224/62; however, the sell-off attracted new short-term buyers that ...

More Ethereum News

NEO Price Analysis: NEO/USD rips higher once again past 12.00

Neo is one of the major outperformers on Monday as the price has risen over 14% on the session. The psychological 13.00 is the next target after 12.00 was broken with ease in the EU ...

More NEO News


Bitcoin Weekly Forecast: BTC/USD bulls fight for every inch of the ground on their way to $10,000

After a sharp sell-off at the beginning of the week, BTC/USD climbed back above $9,000 and made its way above another important resistance $9,300.

Read the weekly forecast