Latest Bitcoin price and analysis
Bitcoin may be edging towards a major breakout above $7,000 after consolidating healthily in the $6,400 to $6,800 region over the past three days
As the typically low volume weekend looms, Bitcoin continues to act indecisively after failing to breakout above the key $7,000 level of resistance.
The majority of global stock markets have shown clear signs of recovery over the past three years, with the Dow Jones rallying by 26%.
However, the rise hasn’t trickled across to cryptocurrencies with Bitcoin seemingly remaining the most steady of all global assets.
A clear break below $6,400 will present an opportunity for bearish traders to drive it back below the $5,900 level of support, which will reinforce the recent death cross.
The daily 50 EMA crossed the 200 EMA the downside on 14th March, with it historically being a very bearish pattern in the history of Bitcoin.
It would not be impossible for Bitcoin to be dealt with a further 50% correction from here, which would take the price to 2018’s low of $3,150.
Much of it will depend on the impact of Coronavirus and the recovery of global stock markets, with Bitcoin showing clear signs of correlation since the turn of the year.
The Bitcoin halving later this year may also have some impact on price as it will see block rewards for miners halved from 12.5BTC per block to 6.25BTC per block, which will theoretically reduce supply.
If Bitcoin can manage to defy all odds by breaking out above $7,000, these weekend price targets remain at $7,400 and $8,190, which is also in confluence with the daily 200 EMA.
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