Bitcoin price analysis March 30 to April 5: the crypto may remain stuck between $5,600 and $7,000 this week

Though the long term looks bullish, Bitcoin is likely to remain range-bound in the near term.

The coronavirus pandemic is not showing signs of slowing down. Several nations have announced lockdowns to slow the spread of the virus. This is having a huge impact on the economy. To support it, many nations have announced huge stimulus packages, the largest being the US. Because of the incessant money printing, Binance CEO Changpeng Zhao believes that Bitcoin could rise to a market capitalisation of $2 trillion, with each Bitcoin valued at $100,000.

Pantera Capital founder and CEO Dan Morehead is also bullish on 0'>Bitcoin. Morehead said that the current global macro disruption "is likely to have a larger global economic impact than any downturn in recent memory". He anticipates institutional investors to eventually enter the crypto space, which could result in a new high for Bitcoin in the next 12 months.

While the fundamentals look strong, let’s study the charts to do a Bitcoin price trend analysis and identify the critical levels to watch out for.

Bitcoin price technical analysis: weekly chart

The rebound off the support line of the symmetrical triangle has not been able to sustain the intra-week highs. This shows that the bears are active at higher levels. The failure to sustain above $6,500 is likely to attract another round of selling.

If bears sink the price below the support line of the symmetrical triangle, a retest of the recent lows at $3,777 is possible. The 20-week EMA is sloping down and the RSI is in the negative territory, which suggests that bears are in command.

Nevertheless, if Bitcoin can bounce off the 200-week SMA at $5,584, the bulls will make another attempt to propel the price above the overhead resistance at $6,500. If successful, a rally to $7,853.95 and above it to $10,000 is possible.

The Bitcoin price analysis of the weekly chart shows that the bulls are unable to hold the higher levels. Will the largest cryptocurrency turn down and start a new downtrend? Let’s analyse the daily chart to do a Bitcoin price weekly analysis for March 30 to April 5.

Bitcoin price technical analysis: daily chart

Last week, the bulls could not build upon Bitcoin’s break above the 20-day EMA, which is a bearish sign. This shows a lack of buyers at higher levels. The failure to sustain above the 20-day EMA has attracted selling by the aggressive bears.

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If the bears can sink the price below the immediate support of $5,600, the BTC to USD pair can drop to the support line of the triangle at $5,000. The 20-day EMA has started to turn down and the RSI is in the negative zone, which suggests that bears have the advantage.

Currently, the bulls are making another attempt to push the price above the 20-day EMA and the overhead resistance of $7,000. If successful, a rally to $7,853.95, which is just below the 50-day SMA, is possible.

The Bitcoin price trend analysis of the daily chart shows that the bears have a slight advantage. What kind of price action can traders expect next week?

Bitcoin price weekly analysis: how to trade it

As the price had turned down from the 20-day EMA, 0'>Bitcoin might drop towards $5,600. The bulls may support this level but are likely to find it difficult to push the price above $7,000. Because of the lack of a defined trend, investors can sit on the sidelines and wait for a new uptrend to start before taking positional trades. If the traders already hold long positions, the stops can be kept at $5,500.

FURTHER READING: Cryptocurrency regulation in the UK: is Bitcoin legal?

FURTHER READING: Should you invest in blockchain? Some important tips to bear in mind

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