Bitcoin price targets $ 5,500 before reversing a bullish move








At the time of writing, Bitcoin is trading at the $ 6,200 area, down slightly over the past 24 hours. Earlier today, the BTC price rose to $ 6,410. However, until the top coin breaks out of $ 6,900, traders continue to favor the downtrend.


Peter Schiff lacks imagination and technological background


PlanB analyst tweeted about the expected Bitcoin halving in 42 days, saying what could happen to the BTC miner and the scarcity of Bitcoin afterwards.




"Halving Bitcoin .. 1 month


1) extraction flow will be halved from 1,800 still 900 BTC/day


2) scarcity (stock-to-flow) will double from 27 to 54 years


In response to a question in the commentary on Peter Schiff, PlanB commented in a respectful tone that Peter Schiff's yellow bug 'lacked imagination and technological background'.


According to analysts, this prevents Schiff from appreciating Bitcoin's digital scarcity.


"I used to be Yellow bug and respect Peter Schiff. However, IMO Peter lacks the imagination & technology platform to appreciate open source, crypto and the invention of digital scarcity Bitcoin. He likes gold because is material & useful (eg jewelry) but I don't think that's important.


However, in the context of the recent Fed Reserve printing of cash, some cryptocurrency lovers believe that Bitcoin is still valuable.




"I would be much more pessimistic about the current state of the world without it Bitcoin. That is the power of hard money and trend low time.


Short-term BTC price prediction


Trader George believes that after Bitcoin closes its monthly price rise, it will decline before reversing above the current price. He sees $ 5,500 as the first target for a move to the downside.




“Close hMonthly increase, but I think price reduction before rise higher. The first goal to short was about 5.500 dollars ”.


Crypto analyst Michael is still discounting BTC while the price remains below $ 6,900. Now, the CME gap has been closed and BTC declined at the support of $ 6,600. Right now, analysts think prices are moving a bit down. However, in the next 4 to 6 years, he is extremely optimistic.




“Well, the CME gap has closed, declined at the previous support of $ 6,600 and is decreasing slightly.
Still mostly limited range, so the volume is low in the market.
Still under $ 6,900 discount.
The long-term (4-6 years) extremely increase for BTC ”.


Three main reasons why Bitcoin could drop below $ 5,000 in April?


"Two weeks of disaster"


Donald Trump has warning US citizens return to "two weeks of catastrophic" when the country has a high number of infections and death rates caused by the Corona virus. The announcement also put the US economy under the pressure of a prolonged price offensive in April.


Futures contracts related to the Dow Jones industrial average have fallen 3%. In Europe, the Stoxx 600 index decreased by 2.9%.


Bitcoin has a positive correlation with stocks during the pandemic and also more than 3% on the first day of April. Therefore, cryptocurrencies are more likely to follow the global stock market for the rest of the month. as economist Nouriel Roubini had predicted earlier in March.




"Bitcoin dropped 33% last month (other Shitcoins than 40%) while US stocks fell about 20%. So, not just cryptocurrencies do not provide a hedge against securities but it's really reduction more in the situation risk. Shitcoin the more is not the fence!


Demand for cash


In recent weeks, the value of the US dollar has risen sharply as investors and companies have increased their reserves to compensate for income and revenue losses due to economic shutdown. Capital outflows have left a major dent in all traditional and new markets. Even gold, acting as a safe haven against declining stocks, has plunged due to strong cash demand.


With governments looking to extend isolation, global demand for the greenback may rise in April. Kyle Rodda, an analyst at Melbourne-based brokerage firm IG Markets, the dollar is under pressure to depreciate as the Fed prints trillions of dollars. But its needs are somewhat balanced psychologically.


"The Fed clearly wants to do everything it needs to ensure dollar liquidity, which puts downward pressure on the dollar. However, with the same token, there is still a chance to boost buying dollars right now because liquidity is at the absolute highest level with lots of risks in the market..


Investors repeatedly sold Bitcoin in exchange for the greenback in March, causing prices to plummet. Cryptocurrencies are currently trading about 61% higher from the bottom, allowing traders to sell it at high prices to get cash in April.




“When there is extreme fear in the market, people flock to safe assets (USD) and major markets move together. That is why Bitcoin and Stock are falling together. ”


Combine the Bitcoin technical indicators


Bitcoin's rally from the bottom of $ 3,858 is attractive but is still limited by the strong resistance zone of nearly $ 7,000. The price has rebounded 3 times after testing the ceiling in March, when forming a bearish double peak pattern as shown in the chart below.


bitcoin


Double top pattern BTC/USD | Source: TradingView.com, Coinbase


The pair is currently testing the short-term uptrend line. Macroeconomic factors can push prices below this line, break below the support of the double peak of $ 5,657 and can increase selling pressure. Therefore, the price could drop below $ 5,000 to test the downside target set by the larger technical model - the giant symmetrical triangle.


bitcoin


Triangle symmetrical BTC/USD | Source: TradingView.com, Coinbase


Global sell-off sentiment can push Bitcoin prices down to retest the support line of the triangle. That is nearly 4,500 dollars.


You can see the price of BTC here.


Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


Minh Anh


According to AZCoin News




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