Bitcoin price analysis for April 6-11: find out if the next move is to $70,000 or $50,000

Bitcoin is getting squeezed between the 20-day EMA and $60,000, indicating an imminent breakout within the next week.

Visa is running a pilot project where it will allow its partner to settle the transactions done in fiat through USD Coin. The payment giant has teamed up with Anchorage and will use Ethereum’s blockchain for settling the transactions. Visa plans to extend this facility to other partners in due course. This is a major step toward taking cryptocurrencies mainstream for doing day-to-day transactions.

In another boost to digital assets, Goldman Sachs revealed plans to allow clients of its private wealth management group to invest in cryptocurrencies from the second quarter. The encouraging thing is that Goldman will allow trading Bitcoin in the spot market, derivatives, and the traditional investment vehicles, said March Rich, global head of Goldman Sach private wealth management division.

JP Morgan said in a note recently that Bitcoin’s decreasing volatility could attract more institutional investment due to its low correlation with other assets. So private investment in Bitcoin could match that of gold, boosting Bitcoin’s price to $130,000 in the long-term, according to JP Morgan.

However, this does not mean that everyone is bullish on Bitcoin. 

Boris Schlossberg, managing director of FX strategy at BK Asset Management, said:

“I think we’re very, very close to perhaps an intermediate-term top here.”

Trend analysis of Bitcoin's weekly chart helps us ubderstand the critical levels both on the upside and downside.

Bitcoin price technical analysis: Weekly chart

After closing in the red for two weeks, Bitcoin’s price closed higher at $58,219.75 with a gain of 4.37% for the week. In a strong uptrend, the corrections are shallow as traders do not wait for a deep correction to get in because they fear missing out on the rally.

Both moving averages are sloping up and the relative strength index (RSI) is in the overbought zone, indicating the trend favours the bulls. 

If the bulls propel the price above $61,777.85, the BTC/USD pair is likely to pick up momentum because traders who had been waiting on the sidelines to enter after a major correction may throw in the towel and buy.

The next leg of the uptrend could carry the pair to $72,521.25. However, if this does not happen and the price turns down from the current level or just after breaking the all-time high, then it will suggest that traders are booking profits on rallies.

If the bears sink the price below $50,511.35, the uptrend could lose momentum and the pair may get ready for a deeper correction.

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The Bitcoin price weekly analysis shows the bulls have the upper hand. Let’s perform the BTC price analysis of the daily chart to determine if it also projects a bullish picture.

Bitcoin price technical analysis: Daily chart

Bitcoin is currently sandwiched between $60,000 and the 20-day EMA. This tightening of the range is likely to result in an explosive move within the next few days. 

If the bulls can drive the price above the $60,000 to $61,777.85 overhead resistance zone, the uptrend could pick up momentum and start the next leg of the rally.

However, if that does not happen, the short-term traders holding on to their positions expecting a rally may book profits. In such a case, the pair could break below the 20-day EMA and challenge the support at the 50-day SMA.

The bears have not been able to sink Bitcoin’s price below the 50-day SMA since 10 October 2020. Hence, several stops are likely to be placed below this level and any break below it could intensify selling.

The next support on the downside is $50,411.35 and if this level cracks, the decline could extend to $42,979.50.

How to trade Bitcoin this week

Traders who acted on the possible trade setup mentioned in the previous analysis could have made a quick profit. 

Bitcoin may now be getting ready for the next trending move. If the bulls can push and sustain the price above $61,777.85, it could pick up momentum. The stop-loss for such a trade could be kept just below the 50-day SMA initially, which may be trailed higher as the price moves northward.

Contrary to this assumption, if the price dips below the 20-day EMA, traders should avoid initiating long positions as that indicates that bulls are losing their grip. The break of the 50-day SMA could offer a shorting opportunity to the experienced trader.

Trade Bitcoin to US Dollar - BTC/USD chart

Bitcoin to US Dollar
Daily change
Low: 17083.9
High: 17377.9

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

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

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