- Bitcoin price stability above $5,300 likely to culminate in losses at $5,000.
- The bulls remain relatively in charge but lack the catalyst or energy to push for gains above $5,500.
Bitcoin price bulls seem to be enjoying their time in the driver seat as they charge towards $5,500. Following the recovery from the brief dip on Monday under $5,000, BTC/USD has led the market into stability and consolidation for over 48 hours. Although the impact the Coronavirus had on the cryptocurrency market last week is still fresh on every investor’s mind, stability brings a sense of hope that recovery is possible in the near term.
At the time of writing, BTC/USD is dancing at $5,341. Attempts have been made to clear the resistance at $5,500 but selling pressure has remained high in this area. The most critical level is $6,000, likely to be the decision point for Bitcoin’s surge above $7,000 or a return to the $4,000’s range.
BTC/USD 4-hour chart
Meanwhile, the Relative Strength Index (RSI) shows clearly that the bulls have more influence at the moment. The RSI has been forming a higher high pattern since last week’s dive to 11.50. Bitcoin requires more buying entries to rise to levels above $5,500 and $6,000. If the short term resistance at $5,500 is not cleared soon, the bulls are likely to get demoralized which, in turn, could oust the consolidation, refreshing levels at $5,000 in order to create new demand for BTC.
Moreover, as long as the 50 SMA on the 4-hour chart continues to widen the gap below the 100 SMA, sellers’ confidence will continue to grow, eventually increasing bearish momentum. In this case, the return to $5,000 could take a catastrophic turn leading to losses that could test the support at $4,000.
Bitcoin Key Levels
Spot rate: $5,341
Relative change: -74
Percentage change: -1.38%
Trend: Short term bearish bias