Over the past few days, the prices of crypto assets have plunged after Bitcoin ended its multi-week strong rally to $ 7,470 and is currently trading at $ 6,856 at press time. Unfortunately, bears are expected to push the fledgling market lower when "strong sell signals" appear.
TThe cryptocurrency market continues to decline
Sharing the chart below, a famous trader pointed out that Bitcoin is likely to continue to depreciate based on the "strong sell signal" of death cross and Tom Demark Sequential (TD Sequential) formed a red candle below. 1 red candle yesterday.
While many people doubt the accuracy of TD Sequential in predicting the trend, it has been extremely true for Bitcoin over the past few months: 9 candles were seen when BTC bottomed out at $ 6,400. December 2019, and at its highest in 2020 of $ 10,500 in February.
Following the precedent of TD Sequential, the cryptocurrency market is setting a medium-term peak.
Underpinning Bitcoin's short-term bearish outlook is the Stochastic indicator, a trend-focused technical analysis tool. The indicator suggests that the short-term rally of BTC has ended the decision. According to a trader, this figure is accurate to 88% for Bitcoin since 2018.
Long-term outlook is still shaping up prices
Short-term declines are likely in the crypto market, but analysts are confident that the medium to long-term outlook is bullish.
In news In April of Crypto Trader Digest, BitMEX CEO Arthur Hayes wrote that while Bitcoin is likely to retest $ 3,000 again if the global market falls back, his year-end price target is "still $ 20,000." ”.
On why he thinks so, he cites monetary and financial solutions that the government and central bank are taking advantage of to prevent an economic downturn:
“Everyone knows the change is ours, that's why central banks and politicians will throw all the tools. they have on this issue. And I repeat, it's inflation because more fiat money will reduce supply of goods and source labor. Only 2 The things to own during the transition to the new system are gold and BTC. ”
Other former institutional traders also agree with this perception.
For example, Mike Novogratz of Galaxy Digital said in an interview with CNBC earlier this month that he fully expects Bitcoin to reach $ 20,000 by the end of the year, confirming that printing more fiat money is a rather optimistic signal. for top cryptocurrencies. He put so much faith in anticipation that:
“I have a big Bitcoin position and I keep adding to it. Partly because this is a great environment to both gold and BTC ”.
BTC price is at risk of falling below 6K dollars if loss of major support level
Earlier this week, Michael van de Poppe suggested that $ 6,900 is the critical level Bitcoin needs to hold and falling below this level may begin to reverse the trend.
Van de Poppe explained:
“The final support area for the bulls is $ 6,750-6,800. Signal weaken The first is annual and monthly losses in 7,200 dollars. However, a loss of $ 6,750-6,800 will cause a decrease much price further and reduce the volume ”.
If the price of Bitcoin fails to hold the support of $ 6,750, it is likely to drop to $ 6,350 unless the sudden increase in selling volume pushes the price below $ 6,350 and $ 6,200 to retest the $ 5,800. .
BTC chart/USDT 1 hour | Source: TradingView
Boò BTC: Do or die
To reverse the current downtrend, the bulls need to recover $ 7,000 and then close above $ 7,200. Even a weekly close at $ 6,900 will at least support Bitcoin making an attack of up to $ 7,200 by the beginning of next week.
On the contrary, the situation will be grim, as retesting the support of $ 5,800 increases the likelihood of a revision under $ 4,000. Analysts like BitMEX CEO Arthur Hayes and traders like PentharUdi or Crypto Capo are predicting Bitcoin to return to the range of $ 3,500 to $ 2,000.
When Bitcoin price dropped gradually on Saturday, the majority of altcoins also dropped slightly. ETH has now pulled back 0.27%, BCH is down 0.89% and EOS has lost 0.25% in 24 hours.
The total market capitalization of cryptocurrencies is $ 196 billion and the dominance of Bitcoin is 64.5%.
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.
According to AZCoin News
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