In this Bitcoin price analysis, the flagship cryptocurrency declined to a low at $5,056.20 and later resumed a range bound movement. Will BTCUSD bearish trend continue?
Looking at the daily chart, Bitcoin (BTC) bulls tested the resistance level of $5,400 and were resisted on Wednesday, April 10. On Thursday, April 11, the price of Bitcoin had a downward correction as it dropped to the support of the 12-day Exponential Moving Averages (EMA). Today, April 12, BTC downward correction continues. The price of the digital coin is now testing the support of the 12-day EMA.
If the BTC bearish trend continues, the bears will break the support level of the 12-day EMA. In addition, the $5,000 price level will also be broken. If that happens, the crypto’s price will crash to the next support level at $4,800. On the other hand, if bulls maintain the 12-day EMA support level, the price will resume its upward trend and climb to the previous high of $5,400.
In the meantime, the Stochastic indicator is at the overbought region while below the 80% range, indicating that BTC is in a bearish momentum and a sell signal.
As the 4-hour chart shows, the price of the BTCUSD pair is in a bearish momentum as the bears have broken the 12-day EMA as well as the 26-day EMA to reach the bearish trend area. BTCUSD dropped to a low at $5,056.20 and resumed a range bound movement.
At the moment, the bulls and the bears are acting indecisively about the direction of the price. However, BTC bulls break above the EMAs, the price will rise to commence its bullish trend. whereas, if the bears continue to take charge, Bitcoin price will plummet to the $4,800 price level.
Currently, the Stochastic indicator is at the oversold region while above the 20% range, indicating that the crypto is in a bullish momentum and a buy signal.
Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The Information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.
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