Bitcoin Price Analysis: Is BTC/USD still in the buy zone heading into the May halving?


  • Bitcoin price is stable above $7,000 following the rally from levels under $6,500 last week.
  • BTC/USD is about to enter a unique buy zone after crossing above the Ichimoku Cloud.

The weekend session has been stable for most cryptocurrencies especially for Bitcoin. The bulls desire to close the week above $7,000 materialized with an opening value of $7,129. BTC/USD has remained in the green throughout the Asian session on Monday. At the time of writing, the largest digital asset is trading at $7,160 after adding a subtle 0.46% to its value on the day. The existing trend is bullish, although the low volatility suggest that very minor upwards movements are expected in the current session.

Bitcoin approaches halving

Bitcoin is grinding closer to the most-anticipated event not only for the network but also for the entire cryptocurrency industry. The May 2020 block reward halving happens to be third in the history of Bitcoin. Reward halving assists in controlling inflation of the asset as well as achieving its 21 million maximum supply. The previous two events were historically significant for BTC as they introduced volatility, reduced supply an increased demand; the perfect ingredients for a bull run.

Meanwhile, Bitcoin corrected from levels under $6,500 last week to highs close to $7,300. The asset has also sustained gains above $7,000. An Analyst with Brave new Coin, Josh Olszewicz believes that Bitcoin is almost entering a buy zone, which occurs once a quarter. According to the analyst, technically Bitcoin could soon climb above the Ichimoku Cloud for the first time in five weeks, giving way for another lift-off from the current levels above $7,000.

Bitcoin price chart

Bitcoin technical picture

Bitcoin price is stable above the moving averages where the 50 SMA and the 100 SMA have easily turned into support areas. The RSI is horizontal at 57 after retreating from highs around 70. The price is largely in the hands of the bulls as emphasized by the MACD. On the downside, other support areas include the ascending trendline, $7,000, $6,800 as well as $7,800. On the upside, a break above $7,200 resistance could result in boosted price movements targeting $7,500 in the near term.

BTC/USD 4-hour chart

BTC/USD price 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


Latest Crypto News & Analysis

Editors’ Picks

XRP getting ready for a 50% upswing as consolidation hits the elastic limit

Ripple’s overhead barriers are still in place, as highlighted on the 4-hour chart. The seller congestion at $0.3 is an uphill battle, so is the 50 Simple Moving Average. 

More Ripple News

ADA technical and on-chain levels confirm a 60% explosion to $0.6

Cardano recently confirmed a breakout in away validating the 900% upswing prediction we discussed last week. Several hurdles have been shattered at the time of writing, including $0.3 and $0.35, adding credence to the potential breakout to $0.6.

More Cardano News

Yearn.Finance brushes shoulders with $40,000 overshadowing Bitcoin’s $36,000

Yearn.Finance has consistently recovered from the recent dip to $25,000. The price drop was not unique to the decentralized finance (DeFi) token but affected the entire cryptocurrency space. 

More Yearn.finance News

LINK squabbles under heavy selling pressure, downswing targets $16

Chainlink is up 10% in the last 24 hours and a whopping 52% in the previous seven days. After breaking above $20, LINK soared to a new record high at near $24. Meanwhile, the uptrend seems to have hit the ultimate point, as selling pressure finds its way back into the market.

More Chainlink News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast

BTC

ETH

XRP