Bitcoin Price Analysis: BTC Bulls Take A Well Deserved Break Ahead Of Bitcoin Halving
- Bitcoin saw a 1.4% price decline over the past 24 hours as the cryptocurrency fails at $9,150 and heads lower.
- Bitcoin is struggling to close above $8,960, but once it does this it should be free to rise well above $9,000.
Bitcoin saw a 1.4% price decline over the past 24 hours of trading as the cryptocurrency made an attempt to push higher but was stalled at the $9,160 area. The coin dropped from $9,160 to fall back beneath $9,000 and reach the current level that it is trading at around $8,860.
Bitcoin is now just 9 days away from the block halving event which will see the mining reward being stripped in half. The block reward will fall from 12.5 BTC per block to just 6.25 BTC per block putting pressure on miners to make profits. This will also cause a reduction in supply entering the exchanges from miners as they half as much to sell on the open market.
Nevertheless, the price of BTC usually explodes in the run-up to the block halving and even after the event and therefore we can expect BTC to pass the current strong resistance at $8,960 over the next few days of trading as we edge closer to the fundamental date.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can see that in yesterday’s trading session, BTC was unable to close above the resistance at $8,960, provided by a 1.618 Fibonacci Extension level. The coin has really been struggling to break this region over the past 5-days of trading.
In today’s session, the coin attempted to push higher as it reached $9,160, however, the sellers then stepped in and push BTC lower to reach the current level at $8,860.
Short term prediction: BULLISH
Bitcoin remains bullish at this moment in time and will remain bullish until it drops beneath $8,140. It would need to fall beneath $7,000 to turn bearish.
If the sellers do push lower, the first level of support lies at $8,500. Beneath this, support is located at $8,400, $8,292, $8,141 (.236 Fib Retracement), and $8,000.
On the other hand, if the bulls can break $8,959, the first level of resistance lies at $9,090 (bearish .786 Fib Retracement). Above this added resistance lies at $9,16, $9,200, $9,500, and $9,600 (1.272 Fib Extension).
Key Levels
Support: $8,800, $8,500, $8,400, $8,300, $8,000.
Resistance: $8,860, $9,000, $9,090, $9165, $9,500.
Bitcoin is struggling to close above $8,960, but once it does this it should be free to rise well above $9,000.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
Published at Sun, 03 May 2020 17:57:36 +0000
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