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Bitcoin price analysis for April 6 to 12: Bitcoin likely to race towards $8,000 this week

By Rakesh Upadhyay

Bitcoin’s daily and weekly chart show the possibility of a sharp move above $7,000

The coronavirus pandemic has forced people to stay at home and this has affected many businesses. As a result, the US weekly jobless claims have soared in the past two weeks. About 701,000 workers have lost their jobs in March, pushing the unemployment rate to 4.4 per cent from 3.5 per cent. To counter this, the US government and the Fed are likely to keep printing money to support the economy. Robert Kiyosaki, the author of international bestseller ‘Rich Dad, Poor Dad’ said that people should move away from the US dollar and “save gold — god’s money or 0'>Bitcoin — people’s money.”

Though excess liquidity could boost traditional assets in the short-term, the stage is set for long-term outperformance of Bitcoin. However, does it make a good buy at current levels? Let’s do the Bitcoin price trend analysis to find out.

Bitcoin price technical analysis: weekly chart

Bitcoin scaled above $7,000 last week, which is a positive sign. Though the bulls could not sustain the price above $7,000, they held on to most of the intra-week gains, unlike the previous two weeks. This shows demand at higher levels.

Currently, the leading cryptocurrency has again climbed above $7,000, which is a huge positive. If the bulls can sustain the price above $7,000, a move to the downsloping 20-week EMA at $7,729 is possible.

Above this level, the next stop could be the 50-week SMA at $8,725. Though both these levels might offer resistance, they are likely to be scaled. Over the medium-term, the BTC to USD pair could rally to the resistance line of the symmetrical triangle, which is close to $10,500.

The bullish view will be invalidated if the buyers fail to sustain the price above $7,000. In such a case, a drop to the support line of the triangle, closer to $5,000 is possible. This level is likely to attract aggressive buying by the bulls.

The 0'>Bitcoin price analysis of the weekly chart shows signs of strength as the bulls are managing to hold on to the higher levels. While the long-term is starting to look positive, let’s study the daily chart to do the Bitcoin price weekly analysis for April 6 to 12.

Bitcoin price technical analysis: daily chart

The bulls accumulated on dips on March 29 and again on April 1. Though the bulls pushed the price to $7,265.65 on April 2, they could not sustain the price above the $7,000 levels. This shows that the bears are active at higher levels.

The 20-week EMA has flattened out and the RSI has risen just above the 50 levels, which suggests that the sellers are losing their grip.

Another positive is that the BTC to USD pair has currently broken out of $7,000 after consolidating in a tight range for the past three days. This increases the possibility that the breakout will sustain above $7,000.

The next target to watch on the upside is $8,000 and above it $9,000. Though the 50-day SMA at $7,524 might offer some resistance, it is likely to be crossed.

On the contrary, if the price turns down sharply from the current levels, it will signal weakness. Such a move can drag the price to $5,500 and below it to $5,000.

The 0'>Bitcoin price trend analysis of the daily chart also shows an advantage to the bulls. Can the traders expect a sharp up move next week?

Bitcoin price weekly analysis: April 6 to 12: How to trade it

Bitcoin is likely to break out and close (UTC time) above $7,000 this week. Above this level, a dash to $8,000 cannot be ruled out. Therefore, the traders can stay on the long side of the trade.

Conversely, if the breakout above $7,000 fails to sustain and Bitcoin quickly gives back its gains, the possibility of a break below $6,500 increases. Below this level, a drop to $5,600 is likely.

Bitcoin to US Dollar
Daily change
9416.3
Low: 9242.6
High: 9416.3

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

FURTHER READING: Where and how to sell Bitcoin: everything you need to know

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