Bitcoin Price Analysis: Why BTC/USD needs to hold above $5,000?

Calm is returning to the cryptocurrency market following a night of despair. Indeed, Bitcoin is a beast and acts as it wishes. The freefalling on Thursday was unrelenting, leaving the investors out of breath and bulls paralyzed. The biggest blow was the drop under $4,000 and for the first time in over a year, Bitcoin showed signs of testing $3,000. It is essential to note that, the downtrend in 2018 found a balance at $3,150.

Impressively, the bulls did not stay in hibernation for long as they pulled Bitcoin price from the ‘crypt’ and achieved an intraday high of $5,756. BTC/USD has, however, adjusted to $5,390 and features an 11% gain from $4,844 (opening value). The prevailing trend has a bullish bias for the short term but the shrinking volatility could slow down recovery. On the other hand, stability is likely to be highly regarded following the swings experienced in the last 24 hours.

The support at $5,000 is key to the recovery that targets levels above $6,000. A break above the 200 SMA currently at $5,492 on the weekly chart could boost BTC/USD to higher levels.

Meanwhile, the downward sloping RSI suggests that selling activities are not entirely ousted and their effects will continue to be felt in the market. The same selling pressure is accentuated by the MACD’s bearish divergence in the weekly range. Besides, $5,000 the next support levels include $4,000 and $3,150 (2018 low).

BTC/USD weekly chart