Bitcoin price analysis April 27 to May 3: the crypto could struggle to break above $8,000 this week

Bitcoin has been gradually moving up but it lacks momentum

Bloomberg’s report titled “Bitcoin Maturation Leap” states that 0'>gold and 0'>Bitcoin would benefit the most from the current ongoing crisis. Bitcoin could transit from being a speculative asset to “the crypto market's version of gold”. However, Bloomberg analyst Mike McGlone does not believe that Bitcoin’s halving would have any impact on Bitcoin’s price. According to him, the event has already been factored in.

In a recent interview, billionaire investor Mark Cuban said that he is bearish on Bitcoin. However, if using Bitcoin becomes so easy that even grannies can operate it, then he would change his view. Until then, Cuban considers bananas to be better than Bitcoin as they can be traded easily.

It is very difficult to make a call using fundamentals alone. Therefore, let’s do the Bitcoin price trend analysis and attempt to forecast its direction this week.

Bitcoin price technical analysis: weekly chart

Bitcoin closed last week with strength. This shows that the bulls held on to the intra-week gains, which is a positive sign. Currently, the buyers are attempting to carry the price towards the overhead resistance zone of $8,000-$8,191.15.

The bears are likely to aggressively defend the $8,000-$8,191.15 zone, from where the massive fall had happened on March 12. If the price turns down from this zone, a minor correction or a few days of range-bound action is possible.

Both the moving averages have flattened out and the RSI is at the midpoint, which also suggests a consolidation for the next few days.

If the bulls do not give up much ground after reaching the $8,000-$8,191.15 zone, it will indicate strength. That will increase the possibility of a rally to the resistance line of the symmetrical triangle at $10,500.

On the other hand, a break below $6,470.35 will be the first sign of weakness. Below this level, a drop to $5,600 is possible. With halving approaching, volatility is likely to remain high in the next few days.

The 0'>Bitcoin price analysis of the weekly chart shows that the trend has turned marginally positive. This shows that the bulls are trying to seize the advantage in their favour. What does the daily chart project? Let’s study it to do the Bitcoin price weekly analysis for April 27 to May 3.

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Bitcoin price technical analysis: daily chart

The rise in Bitcoin has been without any fireworks. Though it has maintained its upward march, the momentum is missing. This is not a sign of a strong trend.

On April 23, the bulls broke above the overhead resistance at $7,470 but could not sustain the breakout. After two failed attempts on April 24 and 25 to drive prices higher, the BTC to USD pair finally made its move on April 26.

The 20-day EMA has turned up and the RSI has risen above the 60 levels after a long time. This suggests that the bulls are back in command. However, if the pair does not pick up momentum, the bulls will find it difficult to break out of the $8,000-$8,191.15 zone.

On the downside, the 20-day EMA is likely to act as a strong support. If it gets broken, a drop to $6,500 is possible. A break below $6,500 will turn the trend in favour of the bears. The Bitcoin price trend analysis of the daily chart shows that bulls have the upper hand but the uptrend lacks momentum.

How to trade Bitcoin

0'>Bitcoin is above both moving averages and has been breaking out of overhead resistance levels, which suggests that the path of least resistance is to the upside. However, as the up move is lacking momentum, the traders can wait for dips to buy, instead of buying on a breakout.

During the week, if the price dips to $7,470 or the 20-day EMA and bounces off it, long positions can be initiated with a close stop loss. On the upside, profits can be booked close to $8,000 levels. Long positions can be avoided if the bears sink and sustain the price below the 20-day EMA.

FURTHER READING: Bitcoin explained simply: everything you need to know

FURTHER READING: Litecoin vs Bitcoin

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