Tanya Abrosimova
Independent Analyst
- BTC/USD recovery momentum has faded away on approach to strong resistance.
- A move below $7,000 will negate the recovery attempt.
Bitcoin (BTC) topped at $7,452 late on Wednesday, before new sellers joined the game and pushed the coin back towards $7,000. At the time of writing, BTC/USD is changing hands at $7,092, down nearly 3% on a day-to-day basis. Will the coin move below $7,000 again, or launch another assault at $7,300 after a temporary pause? Read on to get the answers.
BTC/USD: technical picture
From the long-term post of view, BTC/USD is moving along the descending support line, which is also a lower border of a descending wedge. The price validated this support line four times since the end of December, which means it is likely to serve as a decelerator for the bearish trend.
However, the recovery attempts are doomed as long as the price stays inside the wedge with its upper border currently at $8,950. We will need to see a sustainable move above this handle for the upside to gain traction and take the price towards the next barrier at $9,700, created by 38.2% Fibo retracement for the upside move from December 2018 low to the highest level of 2019. Notably, the price is hovering around 61.8% Fibo retracement for the above-said movement, unable to engineer a decisive breakthrough.
The weekly RSI (the Relative Strength Index) is flat and still far from oversold.
BTC/USD daily chart
BTC/USD: Fundamental developments
The bitcoin market is often influenced by so-called whale transactions, which means sometimes it can be somewhat unpredictable. However, this time around, the community noticed a sharp growth of long orders on Bitfinex. Those longs have not been liquidated even amid the sharp sell-off that took BTC below $6,500 on Wednesday.
One of the most probable explanations implies the whales' activity. Large investors may have been consolidating positions before a massive pump. If this is the case, then BTC/USD should resume the growth and break above the local barrier and proceed towards the wedge resistance.
At the time of writing, there are 45,861 long orders registered on Butfinex, according to the TradingView data.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
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?