The crypto-currency market risks bearish corrections all across the board driven by market capitalization’s largest cryptocurrency, Bitcoin. Nevertheless, Bitcoin opens a buying window to the $8,000 level ahead of BTC halving in May which is expected to positively affect the price due to increased speculation, uncertainty, and lower supply. BTC/USD has recently reached highs close to $7,500, meanwhile, the pair is exchanging at $7,314 as the direction of least resistance stays downside. Tech giant Microsoft has patented the latest Bitcoin mining program that uses data on human bodily activity to reward cryptocurrency users. The program aims to reduce the computing energy consumed during mining while making the process of mining faster as well.
*BTC/USD has recently reached highs close to $7,500, meanwhile, the pair is exchanging at $7,314
*Bitcoin opens a buying window to the $8,000 level ahead of BTC halving
*Tech giant Microsoft has patented the latest Bitcoin mining program
Resistance Levels: $8,500, $8,000, $7,500
Support Levels: $7,000, $6,500, $6,000
BTC/USD Daily Chart: Ranging
BTC/USD is slightly changing hands around $7,300 level. The first digital coin has barely changed from the start of the day, albeit daily. The inability to advance beyond $7,300 to $7,500 levels may build a near-term bearish trend and drive BTC toward a significant $7,000 level to open an $8,000 buy window.
The pair presently fluctuates within a price range of $7,280-$7,377 as it seems unable to resolve price congestion at the level of $7,300. The first level of resistance over the current $7,300 congestion level is $7,500, then the second is $7,700, and the third $8,000 level. The second support level is below the congestion threshold at $6,700, and the third at $6,500 level.
BTC/USD 4-Hour Chart: Ranging
While BTC/USD is exchanging for $7,314. Analysis of the 4-hour RSI time frame suggests that momentum towards the south is minimal. For illustration, correction of the RSI from recent highs appears to have stabilized at 50 (which may mark the start of a consolidation cycle). On the other hand, support from the MA 50 and trendline, positions the trend marginally in the bulls ‘side.
The creation of a bearish pennant trend, on the contrary, suggests that Bitcoin traders would have to brace for a potential crash probably to retest the $6,000 mark. The only way to prevent this collapse maybe to drive Bitcoin over $8,000 level going into the halving event by May 2020.
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