Bitcoin [BTC] logs a 7% increase in the last four hours of April 1, 2020, with the price shooting to highs at $671x.
The surge caused short order liquidations to the tune of $27 million on BITMEX in the last six hours. Anthony Elia, Co-Founder of the digital asset management firm, FinanceDA, tweeted,
Things are coinciding pretty well for the yearly April Fools day pump. #bitcoin
— Anthony Elia ?? (@huobi) March 24, 2020
Only a year back, Bitcoin began a series of short-squeezes as it turns from bearish sentiments to a completely bullish trend. After the 18.45% rise on 2nd April 2019 from $4100 to highs at $5000, the second bullish consolidation leg began on Bitcoin.
The rise at the point of time coupled with bearish sentiments post the coronavirus dump seems analogous. Currently, BTC price needs to successfully break above its range and resistances to completely replicate the move.
Resistances left to Conquer
There is still resistance from the range highs at $6,800-7,000, and from the 200-Day Moving Average around $8190. Moreover, it seems to be forming an ascending triangle with a series of higher lows indicating bullish consolidation. A break-out successful break-out would target $8,700s.
Trading analyst, Josh Rager, tweeted on his trading plan,
From support straight into resistance I’m holding off making the next move until we can see follow up through this level, otherwise, it’s just going to break down here
Needs to hold $6600s
Moreover, the pump last night was not correlated to the stock markets which opened with a bearish gap and closed red (down 4.7%). Nevertheless, it might still be too early to confirm de-coupling from SPX, Josh Rager added,
Not 1.0 correlation, closer to 0.43 – so still see some influence on $BTC
The current macro environment projects uncertainty due to the economic effect of Coronavirus. However, in case it turns out to be a recession, the prices of all assets are likely to be hit further.
Do you think Bitcoin price will from resistance or the bullish action continue? Please share your views with us.
