The last few days of April had the entire Bitcoin community at the edge of their seat. Since rising by nearly 16 percent on the 29th, Bitcoin went all the way up to $9350, but since then, timely corrections have been made to the charts. A 24-hour decline of 5.45 per cent held Bitcoin at $8783 at the time of publishing. Despite the industry’s high volatility, the problem that begs the question is, what’s next for Bitcoin?
Bitcoin 1-day chart
A few key things can be observed when analyzing the Bitcoin 1-day chart. The long-term ascending path that Bitcoin had been pursuing since the 12th of March crash broke on the 30th when BTC reached $8400. Currently, Bitcoin consolidated right under resistance at $8879 and, according to the trend analysis, a bearish correction is expected to take place over the next week.
Higher selling pressure from traders could see Bitcoin drop as low as $7572 support, but that would be extremely bearish during the current rally. A more realistic adjustment phase would see the price drop to $7800 support and encourage a fast bounce back to $8900 rates. VPVR suggested that the trading volume of $7800 has been important over the last few months and that the support could have been sustained for the time being.
Long-term support and Point-of-Control stood at $7,500, under which Bitcoin is unlikely to fall over the next few weeks. $7500 could be BTC’s bottom right now.
The Bullish narrative
Now here is where things get interesting.
Despite the imminent correction period, it is difficult to disregard the fact that bitcoin’s halving is less than 2 weeks away. A strong case can be made that the price will experience another price pump by the beginning of next week, but its current cooldown time. A cooldown duration could see Bitcoin drop to $8450 before another $9000 march takes place.
With the coming halving, miners will have as much hash power as possible to achieve higher block rewards before the inevitable decline in incentives. The 200-Moving Average is another major bullish feature observed.
The 200-Moving Average (Orange Line) completed a trend reversal and became a support for the first time since March 12. Considering that Bitcoin continues to stabilize above the MA for the next 48-hour span, a stable base will be reached at $8400. As a result, a move forward above $9000 and probably $9500 could emerge before May 12th as Bitcoin prepares itself for a critical 2 weeks.
Conclusion
A realistic market situation would cause price adjustments to be made in the next week, but the market situation was anything but usual at the moment. At the moment, however, nothing is certain and more clarification can only be obtained over the next few days.