Bitcoin Price Analysis: BTC/USD stabilizes $6,400 as stocks plunge, Dow Jones falls 400 points

Bitcoin price managed to hold above $6,400 in spite of the shattering of a pennant pattern support I have discussed for over a week. The granddaddy of digital assets recorded a weekly low at $6,466 before bouncing to reclaim the support at $6,000. BTC/USD is doddering at $6,634 at the time of writing.

Minor price action has been made above $6,621 (opening value) with $6,669 marking the end of the intraday bull-run. It has accrued 0.28% in gains on the day but the bullish trend and expanding volatility suggest that more upside action is likely in the coming sessions.

Bitcoin steadies as stocks continue to freefall

The COVID-19 pandemic has introduced unnecessary uncertainty in both crypto and traditional markets such as stocks. The International Monetary Fund (IMF) said that the world is on the verge of falling into the worst recession in history with global growth sinking to -3% by the end of this year. In line with this Dow Jones Industrial Average sunk by over 400 points as businesses in the US continue to operate on the bare minimum due to the lockdowns imposed by various states.

Bitcoin price technical picture

BTC/USD is trading below the 50 SMA and the 100 SMA where both the averages have been turned into resistance zones at $6,876 and $7,000 in the 4-hour range. As the downtrend in the RSI, Bitcoin price is likely to continue with the downtrend in the near term and retest $6,400 support. If no progress is made towards $7,000 from the current levels, another drop to $6,000 seems imminent but will create fresh demand for BTC and allow recovery above $7,000 ahead of the halving in May.

BTC/USD 4-hour chart