• Bitcoin price has dropped by around $7,000 on Tuesday as markets shake off Easter holiday.
  • BTC RSI is at levels last seen when Bitcoin price was at $41,800.
  • The 200-day EMA remains critical in preventing an extended fall.

Bitcoin (BTC) price is drawing further away from the $69,000 threshold, which is a critical level as it barred the upside potential for the pioneer cryptocurrency for years. There is concern, however, as the BTC RSI idnciator is at levels last seen in January. 

Also Read: Bitcoin whales position themselves for pre-halving pump

New Bitcoin ATH pre-halving depends on $69K breaking

Bitcoin price crashed from $71,366 to $64,588 in less than 48 hours. The nearly $7,000 crash liquidated nearly $700 million in positions across the market between Monday and the early hours of the US session on Tuesday.

The dump comes after the upward momentum for BTC disappeared, and sellers took over the market. According to some analysts, the drop is a typical shake off, intended to wipe out the weak hands.

It has not escaped the eyes of analysts that the BTC Relative Strength Index (RSI) has dropped below 50, resetting to levels last seen during the last week of January when Bitcoin price was around $41,800. Specifically, this was just before the exchange-traded fund (ETFs) inflows started to explode.

Nevertheless, reports indicate that weekly ETF flows are positive again after seesawing between a slowdown and more outflows compared with inflows. This should keep hope alive for BTC bulls.

Elsewhere, Tether, the cryptocurrency stablecoin (USDT) pegged to the US Dollar, has moved 60 million USDT from its treasury to Kraken Exchange. The network has also donated $100,000 to BTCPay Server, so it can continue working on enabling anyone to accept BTC. This encourages adoption for the digital asset.

This is also reinforced by speculation that BTC ETFs will be added to UBS platform, which manages $3.5 trillion in global wealth and boasts around $98 billion in market capitalization. Notably, UBS integrating Bitcoin ETFs marks a significant shift in traditional finance's embrace of crypto.

It is a bullish move that erodes barriers for high-net-worth individuals to dive into digital assets. The adoption curve steepens as big players capitulate to crypto's allure. In the latest, the US government has sent a possible test transaction of around 30,174 BTC worth $2.1 billion to Coinbase. The BTC is reportedly from the Silk Road hack funds.

Bloomberg’s James Seyffart, an ETF analyst, has commented, “Government was simply waiting for Judge Failla to dismiss the SEC's accusations that Coinbase conducted brokerage activity through Coinbase Wallet before making this move.”

Bitcoin price outlook as BTC RSI dips below 50

Despite a prevailing bullish thesis on the big picture, the market is currently leaning in favor of the downside after the BTC RSI slipped below the 50 mean level. The Awesome Oscillator (AO) indicator is also accentuating what is seen with the RSI, pointing to falling momentum.

If Bitcoin price breaks support offered by the 200-day Exponential Moving Average (EMA) at $65,556, which has been critical since October, the fall could extend to the $60,800 level.

Notice the hidden bearish divergence on the BTC chart, seen with the RSI recording lower lows whilst the Bitcoin price records higher lows. This increases the chances for further downside if a full reversal emerges.

BTC/USDT 1-day chart

If the 200-day EMA holds as support, it would guarantee a rebound in Bitcoin price toward the upside. A flip of the $69,000 threshold into support would signal more buy orders, increasing the odds for further upside. The first target in such a directional bias would be to reclaim the $73,777 peak before a chance to record a new peak above the $74,000 range.


Cryptocurrency prices FAQs

Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis