The direct listing of popular cryptocurrency exchange Coinbase on April 14 will influence the short-term crypto market sentiment. According to the trading on the private market, Coinbase could command a valuation of as high as $100bn. That would make it one of the largest technology companies to go public in the past few months. 

Bitcoin’s latest bull run has benefitted Coinbase whose revenues jumped from $190.6m in Q1 2020 to $1.8bnn in Q1 2021. Along with Coinbase, its competitor, Kraken has also seen a blow-up quarter. Kraken CEO and co-founder Jesse Powell, in an interview with CNBC, said:

“The first quarter just completely blew away the entirety of last year. We beat last year’s numbers by the end of February.”

Kraken also plans a direct listing in 2022.

The listing of the crypto exchanges may bring greater visibility for cryptocurrencies among the traditional investors, which could be bullish for the sector. Tom Jessop, head of Fidelity Digital Assets at Fidelity Investments, believes crypto has “reached a tipping point” and its adoption is likely to continue “at an accelerated pace” due to the ultralow interest rates

Let’s perform the Bitcoin trend analysis of the weekly chart to determine the critical levels both on the upside and downside.

Bitcoin price technical analysis: weekly chart

Bitcoin’s price inched higher last week to end at $59,988.10, a gain of 3.04 per cent. The bulls had pushed the price to $61,212.50 during the week but could not scale the all-time high at $61,777.85.

However, the positive sign is that the bulls have not allowed the BTC/USD pair to lose ground. This shows that traders are not booking profits in a hurry because they anticipate the uptrend to resume.

If the bulls can thrust the price above the all-time high, the next leg of the up-move could begin, which has a target objective at $72,521.25. The Bollinger bands are sloping up and the relative strength index (RSI) is in the overbought zone, indicating the path of least resistance is to the upside. 

The first sign of weakness will be if the bears pull the price below $50,411.35. If that happens, the pair could drop to the middle band of the Bollinger Band where it is likely to find support.

The Bitcoin price weekly analysis shows that bulls are in command. Let’s perform the BTC price analysis of the daily chart to spot the critical levels on the upside and the downside.

Bitcoin price technical analysis: daily chart

Bitcoin’s price has been trading in the upper half of the Bollinger Bands for the past few days. The bulls tried to pierce the upper band on April 10 but failed, which resulted in profit-booking as seen from the long wick on the day’s candlestick.

That was followed by a doji candlestick pattern on April 11, indicating indecision among the bulls and the bears. The Bollinger bands have turned up marginally and the RSI has risen above 61, suggesting the possibility of an upside breakout.

If the bulls can push and sustain the price above $61,777.85, the pair could resume its uptrend. The first stop could be $65,170.65 and if the momentum picks up, the pair could reach $72,521.25.

This bullish view will invalidate if the price once again turns down from the upper band and breaks below the middle band. Such a move will suggest the short-term traders have given up and are dumping their positions. That could pull the price down to the lower band. A break below the lower band may signal the start of a deeper correction.

How to trade Bitcoin this week

Bitcoin is likely to break out to the upside this week. Traders may consider buying on a breakout above $62,000 if it sustains for a few hours. The stop-loss may be placed below $55,000. The stops could be trailed higher as the price moves up. 

Ideally, the breakout above $62,000 should not look back and dip below $60,000. If it does, traders may reduce their risk by closing half their positions without waiting for the stops to be hit and hold the rest with the stops at $55,000. 

If the price turns down and dips below the middle band, traders may remain on the sidelines.

Trade Bitcoin to US Dollar - BTC/USD chart

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

FURTHER READING: Bitcoin vs Bitcoin Cash vs Bitcoin SV: the ultimate guide