Bitcoin price analysis for April 13 to 19: crypto is likely to drop to $6,000 levels this week

Bitcoin’s daily and weekly charts have turned weak

The ongoing coronavirus pandemic and the remedial measures announced by governments and central banks will continue to determine how various asset classes perform. However, 0'>Bitcoin could decouple from the rest as the upcoming halving of the miner rewards is likely to grab the attention of the traders.

While previous Bitcoin halvings have been positive for the price action, the upcoming halving has kept the analysts guessing. Though fundamentally it is difficult to predict the next move, the long-term charts can provide some insight on what the traders can expect going forward. Let’s do the Bitcoin price trend analysis to figure out the path of least resistance.

Bitcoin price technical analysis: weekly chart

Bitcoin’s relief rally is facing resistance at the 20-week EMA. Additionally, for the past four weeks, the bulls have not been able to hold on to intraweek gains, which shows a lack of conviction at higher levels.

The 20-week EMA is sloping down and the RSI has turned down even before reaching the midpoint, which suggests that bears are in command.

The bears will now attempt to sink the price back to the support line of the large symmetrical triangle. This is a make or break level for the largest cryptocurrency. If the bears can sink and sustain the price below the triangle, it will be a huge negative.

However, the bulls are likely to aggressively defend the zone between $5,600 and the support of the triangle at $5,000. If this level holds again, buyers will attempt to push the price back to the resistance line of the triangle at $10,500.

The 0'>Bitcoin price analysis of the weekly chart shows that the advantage has tilted in favour of the bears and a minor correction is likely. Does the daily time frame also support a fall? Let’s analyse the chart and do the Bitcoin price weekly analysis for April 13 to 19.

Bitcoin price technical analysis: daily chart

Repeated attempts by the bulls to propel Bitcoin above the 50-day SMA failed last week. This shows that the bears are aggressively defending this resistance. The only positive is that the bulls have not allowed the price to dip below the immediate support at $6,572.

However, the failure to scale above the 50-day SMA is likely to attract profit booking by the short-term bulls and shorting by aggressive bears. Currently, the bears are attempting to sink the price below $6,572.

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If successful, the BTC to USD pair could slide to the next critical support at $5,600. The 50-day SMA continues to slope down and the RSI has again slipped back below 50 levels, which suggests that the bears are making a strong comeback.

However, if the bulls defend the support at $6,572, there might be one more attempt to push the price above the 50-day SMA. If successful, a rise to $8,000 and above it, to $9,000 is possible.

The 0'>Bitcoin price trend analysis of the daily chart shows that the bears are mounting a stiff resistance at the 50-day SMA. Should the strategy be to buy the dips or sell the rallies this week?

Bitcoin price weekly analysis: April 13 to 19: How to trade it

The traders should closely watch the support at $6,572. If this support cracks, money could be made by staying on the short side. Partial short positions can be closed near $6,000 and the rest can be closed at $5,700.

On the other hand, if the price bounces off $6,572 and rises above the 50-day SMA, long positions can be initiated with a strict stop loss. The target objective is $7,500 and then $8,000. As there is no defined trend, the position size can be kept at about 50 per cent of usual.

Bitcoin to US Dollar
Daily change
16968.2
Low: 16898.8
High: 17036.4

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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