Cryptocurrency Market Update: Bitcoin and gold toying with a massive selloff, is $1,000 in the picture?

Bitcoin price managed to stay above $7,200 support in the wake of rejection from levels under $7,500. The most traded cryptocurrency has stepped above $7,300 but is currently struggling with the resistance at $7,400. Across the cryptocurrency market, bears appear to be taking over control. All the top three cryptoassets are slightly in the red. Ethereum is trading marginally below the opening value at $173.31 while Ripple is down 0.88% to trade at $0.20.

Bitcoin price eyes $1000: Henrik Zeberg"

A cryptocurrency trader and analyst on Twitter Henrik Zeberg is not afraid to openly speak of Bitcoin’s possible dive to $1,000. Zeberg is choosing to remain bearish in spite of Bitcoin price recovery from levels around $3,864 (reached in March) to highs close to $7,500 (earlier this week). Using the chart below, the trader points out that Bitcoin is vulnerable at $7,200.

#Bitcoin looks fragile here....! pic.twitter.com/miQN2ToFk3

— Henrik Zeberg (@HenrikZeberg) April 9, 2020

Alongside the gold, the world’s most precious metal, Bitcoin is likely to fall into another selloff. Zeberg says that “Bitcoin and gold are so misunderstood at this point! We have strong illiquid phase in front of us.”

#Bitcoin and #Gold are so misunderstood at this point! We have strong illiquid phase in front of us. SP500 from ~2600 to ~1800. That is another ~30% drop! Everything will be sold off! I have take my target for Bitcoin down to ~1000 USD before bottom pic.twitter.com/Q0ugvqddlZ

— Henrik Zeberg (@HenrikZeberg) April 7, 2020

Bitcoin price technical picture

According to the daily chart, Bitcoin upside is limited by the 50-day SMA. Movement above $7,400 (tipping point) could push the price above $7,500. This is likely to shift the focus back to $8,000.

However, in relation to Zeberg’s bearish prediction, a bearish pennant patent puts Bitcoin in grave danger of breaking down to retest the support at $6,000 or even $5,000.

Meanwhile, short term analysis shows Bitcoin is likely to embrace consolidation as long as the RSI keeps on with the leveling motion between 50 and 60.

BTC/USD daily chart