The last couple of days of April kept the entire Bitcoin community at the edge of their seat. After surging by almost 16 percent on the 29th, Bitcoin went all the way up to $9350 but since then, timely corrections have taken over in the charts. A 24-hour depreciation of 5.45 percent has kept Bitcoin at $8783 at the time of writing. With such high volatility in the industry, the topic that begs the question is, what is next in store for Bitcoin?
Bitcoin 1-day chart
On analyzing the Bitcoin 1-day chart, a few key things can be observed. The long-term ascending channel that Bitcoin had been following since the crash on 12th March was breached on the 30th when BTC crossed $8400. Currently, Bitcoin consolidated right under the resistance at $8879 and according to pattern analysis, a bearish correction should take place over the next week.
Higher selling pressure from the traders might see Bitcoin drop as low at $7572 support, but that would be incredibly bearish during the current rally. A more practical correction period should see the price drop down to $7800 support and facilitate a quick bounce back to $8900 levels. VPVR indicated suggested that trading volume at $7800 has been significant over the past few months, hence the support would possibly hold for the time being.
The Bullish narrative
Now here is where things get interesting.
In spite of the impending correction period, it is impossible to ignore the fact that Bitcoin’s halving is less than 2 weeks to go. A strong case can be made that the price could undergo another price pump by the start of next week but its current cooldown period. A cooldown period might see Bitcoin drop down to $8450 before it entertains another march above $9000.
With the approaching halving, miners would be putting in as much as hash power as possible to gain higher block rewards before the eventual drop in incentives. Another major bullish trait observed is the 200-Moving Average.
The 200-Moving Average (Orange Line) completed a trend reversal and became a support for the first time since March 12th. Considering Bitcoin manages to consolidate above the MA for the next 48-hours, a solid base would be attained at $8400. Hence, a push forward above $9000 and possibly $9500 might surface before 12th May as Bitcoin braces itself for a crucial 2 weeks.
A practical market scenario would see the price undergo corrections over the next week but the market scenario was anything but normal at the moment. However, nothing is certain at the moment and more clarity will only be attained over the next few days.