Bitcoin Drops Nearly 6% as Crypto Analyst says, Don’t Expect BTC Pullback to $4,000 USD Pricing Range
Bitcoin is playing the game of what goes up, must come down and Tether is the lever in control of the action. In the past 24 hours the coin market cap for all crypto assets was at $186 billion and now sits at $169 billion in a sea of red except that one bump on a log coin, Tether. That's right, the lonely USDT stablecoin is the only one left at the dinner table eating up the green vegetables available in today's market.
But we tend to begin with Bitcoin, the fearless leader and organic origins of the blockchain-based building blocks of the future of finance.
The leading cryptocurrency is staying well above $5k since breaking above this level on April 8th, earlier this week that has been in continuation with the last week’s significant gains.
At the time of writing, Bitcoin has been trading at $5,024 with 24-hours loss of 0.64 percent with the daily trading volume of over $806 million, as per Messari’s Real 10 24-hr volume.
BTC USD chart, Source: TradingView
Till now this year, Bitcoin has surged more than 40 percent. Could it be said that we are on our way to yet another Bitcoin rally?
It is a real possibility but analysts are expecting a pullback before Bitcoin started surging upwards. Cryptocurrency trader and investor, Credible Crypto says the reasons for him being “short” are the volume divergence during the move up, daily SFP into supply zone with a close below resistance, and EW count having confirmed that short term upside is completed.
He further says that we are “definitely” going higher as the overall trend is bullish but not before we see a small correction.
Here's why I am short. pic.twitter.com/gPFkF6AsSQ
— Credible Crypto (@CredibleCrypto) April 11, 2019
But Might Not See $4k
Industry analysts and traders are alike in this pullback approach as after seeing over 23 percent return just last week with BTC price shooting up from $4,100 to above $5k, the market needs a correction.
“Don't expect a pullback to $4000. Too deep.”
Moving downwards, he says the support levels are present at $5k, $4,780-$4,680, $4,550 (200 DMA), $4,400, and $4,200. As for making an ascent, the flagship cryptocurrency would find resistance at $5,350, $5,500, $5,750 (weak), $6,000, and $6,400.
Bitcoin Back into the Saddle
CNBC’s Brian Kelly in his latest analysis shares that there is a possibility that the $3,200 low from 2018 December will be the lowest Bitcoin will saw.
He further puts emphasis on the improving fundamentals of the top cryptocurrency that are painting a bullish picture as active addresses, one of the big metrics Kelly keeps his focus on, is up 26 percent since the January lows and transactions levels are back to the 2017 level. All of these improvements reflect a lot of network activity.
As for who is buying Bitcoin, he says, Fidelity is still very much on to its way to rolling out the institutional platform and further pointing out the record volume registered by CME. These, Kelly says are large open interest holders, the big institutions that are on all-time highs.
“Starting to see institutional investors coming here with a good fundamental tailwind and that’s got bitcoin back into the saddle again.”
Will we be seeing a new high? Kelly says, “without question.” He further notes that it is a two-year cycle and in 2020 with bitcoin halving event the supply would be cut in half. So, in these two-year people we will be seeing a:
“big upswing particularly with these institutional investments.”