Bitcoin Price Analysis: Americans Investing Government Stimulus Package In Bitcoin As Price Retreats Under $7,000

Bitcoin Futures Open Interest OKEx BitMex

  • Americans now investing part of their $2,000 stimulus package in Bitcoin and other cryptocurrencies.
  • Bitcoin price slides from last week’s high around $7,314, testing support at $6,750 but recovery is underway, targeting $7,000.

Bitcoin price recovered significantly towards the end of last week. The bullish momentum appeared to have been a technical breakout supported by renewed interest among investors due to various factors including the block reward halving event coming up in May and the stimulus package American people are getting from the government. The stimulus package is meant to cushion the citizens from the shocks of the COVID-19 pandemic on the US and the global economy. In the US there has been a historical increase in the number of jobless claims.

Brian Armstrong, the CEO of Coinbase, a leading cryptocurrency exchange in the US recently shared data indicating an increase in the number of transactions, precisely for a figure of $1,200. Users on Reddit have also confirmed that people in the US are putting up to $1,200 of the stimulus package in Bitcoin and other cryptoassets. A representative of Binance US also confirmed the same figure while talking to CoinDesk on Monday according a Report published by Forbes.

Bitcoin Price Technical Picture

At the time of writing, Bitcoin is trading at $6,878 following a retreat from last week’s highs around $7,314 (on Coinbase). Although the buyers commenced this week above $7,000 as desired, they have failed to contain the gains above the same level and sustain recovery towards $8,000.

A trendline support is still intact and has been instrumental in stopping extended loses towards $6,700. An ongoing bullish action hints that a reversal is in the offing. Besides, the RSI is moving upwards from the oversold region to show that bullish interest is returning.

BTC/USD 1-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

On the upside, a break above the pivotal $7,000 level must be ready to deal with the resistance at both the 50 SMA and the 100 SMA in the hourly timeframe. Additional hurdles are at the 61.8% Fibo level of the last swing high at $9,213.78 to a swing low at $3,891.99. For now, the best move is to cross above $6,900 and focus all attention on climbing past the $7,000 level.

Bitcoin Intraday Key Levels

Spot rate: $6,879

Relative change: 36

Percentage change: 0.53%

Trend: Bullish

Volatility: Shrinking

 

 

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