- Bitcoin has reached an area of strong resistance with a weak technical setup that favors more falls, looking for a floor
- New instruments being announced, easing the institutional trading path in the Crypto sphere
I have memories from my time trading the futures' markets about prices falling hard before the arrival of "deep pockets" (whales in the Crypto sphere). We might be reaching that time with Cryptos, with traders needing to start incorporating the behavior of big institutions in their analyses.
BTC/USD 4H chart
Bitcoin has not been able to break above the strong resistances that the moving averages and the bearish price action from the start of the year are providing. Bitcoin is back to the Diamond formation where it escaped from last week. This changes the scenario, taking us to a much more limited scenario, with less but much clearer options.
On the downside, Bitcoin has a support from the $7854 area that extends down to the $7800 area, right where the lower sides of the Diamond formation are located. If that level is lost, expect a total new different scenario, with free room to look for new lows for the year.
The first support in this new scenario is at $7400, followed by $7100, $6855 and $6600. It is not the scenario I find the most likely, but it is worth to keep it in mind.
On the upside, an important level to conquer before any bullish attempt between the $8400 and the $8550. If that level is reached, we will find a very strong resistance area where the 100-SMA, the 200-SMA and the 50-EMA are trading.
MACD in the Bitcoin 4-hour chart has crossed to the downside after reaching the middle zone of the indicator, initiating a downward trajectory of a potentially big dimension. The pattern of this tool normally doesn't extend the fall too much, but patterns don't always hold. In case of following the "normal" behavior, expect a bullish turnaround on the weekend.
Directional Movement Index in the same chart shows sellers taking control and trading over the ADX, which gives confirmation to the current movement. Moreover, this one is still following the action, indicating the presence of trend strength.
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.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?