Which Way Is The Bitcoin Price Heading Next?
With the Bitcoin price taking a healthy correction at the weekend from its all-time high of $64,863 to a local low of $53,660, many are wondering which way the BTC price is heading next.
The $10,000 correction liquidated almost $10 billion of longs, most of them questionably on Binance, but the price has since stabilized in the $53-57 range since Sunday.
Many put the BTC price correction down to news that the US Treasury is set to charge several financial institutions for money laundering through the use of cryptocurrencies, or the decline in the BTC mining hashrate due to the power outage in Xianjang.
News always plays into bull or bear narratives, but there was an inflow of 9000 BTC to Binance on April 16, according to popular analyst Willy Woo.
Woo says, because Binance serves mostly the Asian market the whale would have known of the power outage and used it to manipulate the Bitcoin price, which would have been easier to do on a weekend.
Let’s take a look at some price analysis.
TA Short Term Looking Undecided
The Bitcoin price started a decent recovery wave above the $55,000 resistance zone and broke the $56,500 and $57,000 resistance levels, according to data from NewsBTC.
There was a break above the 23.6% Fib retracement level of the downward move from the $63,750 swing high to $51,150 swing low. However, the bulls faced an uphill task near the $57,500 level and it also remained well below the 100 hourly simple moving average.
Bitcoin was rejected near the 50% Fib retracement level of the downward move from the $63,750 swing high to $51,150 swing low. It is now trading well below the $57,000 level and the 100 hourly simple moving average.
There is also a key declining channel forming with resistance near $56,000 on the hourly chart. And at time of writing, the BTC price is in another trend down and is currently $53,817, and a break below the $53,000 support would see Bitcoin market cap drop below the significant $1 trillion mark.
A drop below the $1 trillion market cap, could see Bitcoin slip further, where the next major support is around $52,000.
An upside break above the channel resistance could open the doors for a move towards the $57,500 resistance. The next major hurdle for the bulls could be $58,000 or the 100 hourly simple moving average. A close above the $57,500 and $58,000 levels is a must to change the current bearish bias in the near term.
A Break Below Resistance Could Be Bullish
Many analysts believe we are still a long way from the market top, and are set for much more growth in the coming months.
According to one analyst, a further move down for the BTC price will benefit the market even more than an immediate leg up from here. He claims break down lower will kick off a new run towards $200,000.
‘You actually want bitcoin to take another leg lower this month. That’s ideal bc it kicks off a new $200k cycle run starting May. What we don’t want is to triangle here and pump as that would setup a shitty Q2/Q3.’
The price correction was also a bullish sign as it pierced the Ichimoku Cloud for the first time since last year.
The 15% correction saw the Bitcoin price bounce off, and even pierce the cloud on the Binance chart, which is a bullish sign.
The cloud in the Ichimoku indicator signals a support line, and if an asset goes too far high up the cloud, it could mean that it is overbought, but because the price bounced off the support it is bullish going forward.
We can see going back to the start of the year, Bitcoin has been much higher than the Ichimoku cloud. The last time it touched support in ealry February we had a 50% run up in the BTC price.
It’s all a bullish sign and the price correction, even though it was heavier than what we’ve been used to in the last few months, is a sign the Bitcoin price is acting normal.