Bitcoin price analysis April 20 to 26: crypto could see breakout above $7,500
Though Bitcoin remains in a range, the price analysis for April 20 to 26 reveals the advantage is gradually shifting in favour of the bulls
For the next few days, the crypto markets are likely to be fixated on 0'>Bitcoin due to its upcoming halving event. Analysts are confused whether the current halving event will be bullish or bearish for Bitcoin’s price.
Blockchain intelligence firm Glassnode tweeted that the total number of Bitcoin held in exchanges has reduced by about 10 per cent from the recent highs. It is believed that investors withdraw their Bitcoin from exchanges and hold them in personal wallets when they expect the price to move higher.
While it is difficult to arrive at a conclusion by following the fundamentals, let’s do the Bitcoin price trend analysis to find out whether Bitcoin is likely to move up or down in the next few days.
Bitcoin price technical analysis: weekly chart
The long tail on the candlestick last week shows that the traders bought the dip. This was a welcome change from the long upside wicks seen on the weekly candles for four consecutive weeks, which shows selling at higher levels.
The 20-week EMA has flattened out and the RSI is also just below the 50 levels, which shows that the selling pressure has reduced.
If the bulls can propel the price above the immediate resistance at $7,470 and the 20-week EMA at $7,605, a rally to $9,000 is possible. The 50-week SMA is placed just below this level at $8,724.
Bitcoin will turn negative in the short-term if the bears sink the price below $6,470.35. Such a move will indicate that the bears have overpowered the bulls and a deeper correction to $5,600 is possible.
The Bitcoin price analysis of the weekly chart shows a neutral picture. A rally above the 20-week EMA will indicate an advantage to the bulls while a break below $6,470.35 will signal that bears have the upper hand. Let’s study the daily chart to do the Bitcoin price weekly analysis for April 20 to 26.
Bitcoin price technical analysis: daily chart
The bears broke below the critical support of $6,572 on April 16 but they could not sustain the lower levels. Bitcoin reversed direction from $6,470.35 and rallied sharply to close (UTC time) above the 50-day SMA on the same day.
This is a positive sign as it shows that the bulls are waiting to accumulate on dips. For the past four days, the BTC to USD pair has sustained above the moving averages, which have completed a bullish crossover.
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The moving averages that had been acting as resistance until now are likely to flip over and act as strong supports. The RSI is also in positive territory. Above 60 levels, it will indicate that the bulls are firmly in command.
A breakout and close (UTC time) above $7,470 is likely to attract further buying that can result in a rally to $8,000. If the momentum can carry the price above this level, the up move can even extend to $9,000.
The bullish view will be invalidated if the pair turns down from the current levels or from the overhead resistance of $7,470 and plummets below the $6,470.35-$6,572 support zone.
Though the price is stuck in a range, the 0'>Bitcoin price trend analysis of the daily chart shows that the bulls are having a slight advantage.
Bitcoin price weekly analysis: April 20 to 26 – how to trade it
Currently, the price is stuck in a range. The best way to trade in a range is to buy when the price dips to the support of the range and sell when the price nears the resistance. Another possible trade setup is buying the breakout.
If 0'>Bitcoin sustains above $7,470 for a few hours, it will signal that the bulls have overpowered the bears. Hence, a quick move to $8,000 might be on the cards. Traders who miss buying the breakout can also look to buy during the retest of the breakout level. However, long positions should be avoided if the price dips and sustains below $6,470.35.
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