Bitcoin Stops At A Major Resistance; Traders Say Its A Tough Time to be Bullish Yet
- Bitcoin surges past $7,700 while altcoins get slammed down
- BTC/USD in ascending channel and could pull back to $6,200
- “At this point, adoption doesn't even need to grow to sustain the price anymore,” – analyst Mati Greenspan
Last week, bitcoin made a strong move and jumped above $7,500. This week, bitcoin is extending those gains as the leading cryptocurrency makes its way over $7,800.
For now, $7,800, the major resistance level is rejected and we are hovering around $7,700.
7800 is a big level.
— ₿itBit (@BitBitCrypto) April 27, 2020
Stopped by the strong resistance, in the short term trader Crypto Michael says, “A clean break above $7,700 and I'd target $8,400 as next level.”
$BTC is heading to 9200.
You can short it until then and get rekt all the way up or embrace the trend.
— Wolf (@IamCryptoWolf) April 27, 2020
Tough to get bullish
In the past month, Bitcoin has managed to recover all these losses it made during the mid-March sell-off.
In the past year, the flagship cryptocurrency has jumped 45% compared to a 34% spike in gold prices.
During this time, the Dow Jones lost -10.4% of its value while the S&P 500 is down -4%.
Despite its performance, trader Jonny Moe isn’t feeling much bullish about the price action and sees BTC/USD going back to $6,200.
“I'm having a tough time getting myself bullish inside this ascending channel. If the current consolidation breaks to the downside, it's hard to see the channel bottom surviving another test,” said Moe.
TraderXO echoes Moe’s thoughts and in the big week ahead sees, “Maybe a run 78s – 79s into .618 fib and pullback.”
Just ahead of halving
It’s been over one and a half months since bitcoin's price has seen the $7,700 level. That too just a fortnight from the halving. With this, the annual inflation for bitcoin will decline from the current 3.65% to just 1.8%, “approximately half of the global annual inflation rate.”
“At this point, adoption doesn't even need to grow to sustain the price anymore,” said analyst Mati Greenspan. However, it’s it be known how this information which is well-known in the market would affect the price.
The third such event is another reason why not everyone is jumping on Bitcoin’s bull train. Supply shock while the hash rate continues to grow means there will be a miner shakeout and difficulty adjustment.
Bitcoin Bitfinex whale Je007 has long been pointing out that halving would affect miners, many of those are over-leveraged who will dump their BTC and in turn price.
Nooo, of course it's not priced in. On the very day of The Great Halvening, everybody will finally realize how underpriced BTC is, and they will all rush to buy it. In droves. With their unemployment checks. https://t.co/wAtitWuZbt
— ᴹᵁᴴ𝔍𝔬𝔢⁰⁰⁷ 🐳 (@J0E007) April 26, 2020
Altcoins get slammed down
Altcoins meanwhile that have been enjoying a strong percent of gains have now started shedding them as BTC makes its way up.
“As is quite often the case, alts turn green for several days, bullish alt sentiment comes back only for them to get slammed down again by a significant BTC move,” said TraderXO.
However, Cardano (ADA) is leading the gains today with 7.69% green. In the past year meanwhile, EOS among the top coins suffered the worst with a loss of 41.80% followed by TRON (38.7%), and XRP (33.84%).
The likes of Algorand, PundiX, Holo, Zilliqa, and HBAR lost 65% to 92% of their value.