- The Bitcoin price is currently in a critical zone, as technical chart analysts agree. The level around USD 6,500 is currently providing important support.
- The fate of the altcoins is strongly dependent on Bitcoin, as the correlation remains high.
The Bitcoin price is currently still in a critical range. After Bitcoin (BTC) initially managed to regain the 7,000 USD mark last weekend, a dump followed, which was marked by a very high trading volume within one hour. As the Bitcoin chart shows, the market has apparently not yet recovered from this shock.
A few hours ago (04:00 UTC), BTC was once again rejected at the important USD 7,000 mark and fell to USD 6,811 at the time of writing, with a still slight increase of 2.4% over the last 24 hours.
As technical analysts are commenting, however, the recent price movement of Bitcoin has led to the formation of a head and shoulder pattern. In the technical analysis, this indicator suggests that further significant price declines may follow in the coming days. As Mohit Sorout also noted, head and shoulders are one of the most reliable classic patterns, especially over longer periods of time, as is currently the case.
Valid HnS top on $BTC pic.twitter.com/oefzEqm1fP
— Mohit Sorout 📈 (@singhsoro) April 13, 2020
Analyst “Flood” confirmed this view and told its 74,000 followers on Twitter that the recent price movements has put Bitcoin in a bearish situation. If the support at USD 6,500 cannot be maintained, Flood believes that the bear market is confirmed. However, as long as this support holds, “Flood” will remain bullish, as he emphasized in a recent tweet:
I hate planning out multileg trades but probably something like in the next few days. I’m bull biased here unless we dump below 6.5k. Then it would be pretty clear invalidation.
The critical level around $6,500 is also confirmed by renowned analyst Tyler D. Coates. In a recent tweet, he explained that the short-term fate of Bitcoin could depend largely on whether BTC can maintain its last quarter’s closing price of USD 6,425. To enter bullish territory, Coates suggests the trend line at around $7,100 USD. Josh Rager also shared a rather bearish outlook with his more than 70,000 followers and explained:
Zooming in to 4hr, price is still above point of control but a close below $6650, imo, leads to $6200s support as the next stop. Price was never able to close above value area high – $7450 and looks like could be the start of lower-highs and lower-lows on lower time frames.
However, due to volume clustering, analyst “Big Cheds” also concludes that Bitcoin’s March low of $3,800 was a long-term low, as the accumulation of volume increases on the weekly chart shows.
Based on volume clusters, one can make a solid case that the bottom is in $BTC #Bitcoin (Weekly View) pic.twitter.com/10FyLBqc3i
— Big Cheds (@BigCheds) April 13, 2020
Altcoins continue to correlate strongly with Bitcoin
In the current situation on the crypto market, the correlation of the altcoins to Bitcoin remains high. Within the top 20 by market capitalization, Ethereum (+3.6%), XRP (+1.7%), Cardano, (+2.3%), Monero (+2.3%) and TRON (+3.6%) are following the trend set by Bitcoin.
Chainlink (LINK) is currently experiencing a slight price decline (-0.6 %). However, as soon as a significant upswing in the crypto market follows, Chainlink could be one of the biggest winners of the rally. As Timo Harings noted, LINK is experiencing a strong accumulation phase since the crash in March.
‘Follow the smart money, the whales’. The top 1% #LINK wallets have been accumulating the whole last year, no matter the price. Biggest increase can be seen in sept. at 1.60$ and now in march at 1.80$. But they didn’t stop at 4$. They think 4$ is still undervalued.. #Chainlink pic.twitter.com/FSYmxmEV52
— Timo Harings (@DLTPandu) April 11, 2020
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