The rally of Bitcoin (BTC) from a sharp drop to $ 3,700 last week was continued when the largest cryptocurrency in the market quickly reached a high of $ 5,500 before recovering below $ 5,400. The improvement in the price action of the cryptocurrency market seems to be driven in part by a positive signal from the White House press conference today – which is related to Treasury Secretary Steven Mnuchin confirm that the Trump administration will launch a $ 1 trillion bailout package to deal with the impact of the corona virus.
The move is aimed at helping revive small businesses, various industries and citizens affected by the impact of Covid-19.
In addition to the fear that a pandemic could destroy the health of millions of people around the world, the stagnation of global economies is one of the main factors that continue to have a negative impact on the market. stock market.
The market is waiting for more definitive decisions, a clear message from governments around the world that there will be intervention to prevent the spread of Covid-19 and also stabilize the market. the more sick. Today seems to be the first step towards that.
Bitcoin is headed towards $ 5,500
At the time of writing, Bitcoin continues to trade in a range from $ 5,050 to $ 5,400 and the price is facing resistance at $ 5,500. On the 1 and 4-hour time frame shows an evolution of the higher lows and a positive development is that Bitcoin appears to be on the upside to turn $ 5,400 into support.
This at least allowed the price to consolidate within the previous week's range – which expanded from $ 5,200 to $ 5,600, and traders were in a better position to move to $ 6,000.
Currently, the price is attempting to rise above the high volume button of the VPVR indicator at $ 5,456 and if successful, this will help traders pursue the higher daily peaks above $ 5,638 and $ 5,973.
As mentioned in a previous analysis, the VPVR indicator on the daily time frame shows a gap between $ 6,300 and $ 7,300, but the price will need to surpass the potential resistance at $ 6,400 to complete this movement. .
Build momentum but retest lower levels of support is needed
Earlier today, CoinTelegraph analyst Michael Van de Poppe shared the chart above and explained that a retest of the $ 6,000 or $ 6,400 resistance level will exploit high liquidity and narrow the CME gap to between $ 5,900. to 6,000 USD. Van de Poppe expects the price of Bitcoin to fail before the $ 6,000 or $ 6,400 threshold, he explained:
“For a complete trend reversal, investors often expect lower levels to be tested for a double bottom formation. Another argument would be a bullish divergence on higher time frames, usually implying a bottom structure. ”
On lower time frames, we can see the relative strength index (RSI) is continuing to rise to the bullish zone, and although the moving average convergence divergence (MACD) is still bullish, the histogram of This indicator shows the momentum is slowing down when the dark blue bar (light color) and the slope begin to decline.
We can also see the Bitcoin price losing momentum as the wicks become longer at each close and the price is placed between the volume button of the VPVR indicator at $ 5,335 and the overhead resistance at $ 5,450.
What will come next with Bitcoin?
On the daily time frame, the price of Bitcoin is still oversold, despite the RSI rising from 15 to 30 in the past two days. A positive point is that the daily purchase volume is increasing and as this continues, Bitcoin will have a better chance of overcoming the VPVR volume gap, thereby continuing to attack the $ 7,200 level.
In case Bitcoin fails to break through the $ 5,500- $ 6,000 level, the price will drop to $ 4,800 – where it will find support. Below this level, BTC is supported at $ 4,400 – the point where the price bounced twice in the previous week. A failure to close above $ 5,200 will increase the likelihood of a retest of the range of $ 4,800- $ 4,400.
Disclaimer: This article is an analysis by cryptocurrency analyst Horus Hughes – a frequent contributor to CoinTelegraph. Readers should only consult, not consider this as an investment advice, especially from Toiyeubitcoin, we will not be responsible for your investment.
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According to CoinTelegraph
Translated by ToiYeuBitcoin