Since the monthly close that transpired at the turn of the month (UTC), Bitcoin has tanked, falling 4% from the $6,500 price where it spent most of the past few hours to a low just above $6,250.
The move lower began just eight minutes after the monthly candle closed, potentially suggesting that market players were intending to keep the cryptocurrency above a certain price ahead of that crucial event.
What’s Next For Bitcoin?
Most analysts seem to be convinced that the recent move lower is bearish for the cryptocurrency market, rather than a quick drop that will be followed by a bounce back to the mid-$6,000s. Although not a concrete prediction per se, Tyler Coates, a prominent crypto trader formerly known as “Financial Survivalism,” posted the below chart, showing that Bitcoin could head back into the $4,000s should it follow the inverse of the price action that transpired from March 12th to the 18th or so.Equal and opposite reaction? — Tyler Coates (@Sawcruhteez)
Monthly Candle Closed Above Key level
Importantly, though, BTC closed March’s candle just a smidgen above the key technical level at $6,400. $6,400 is a crucial level from a long-term perspective, as that’s where BTC bottomed in December. Also, the low-$6,000s were absolutely key for Bitcoin during the 2018 bear market: the cryptocurrency bounced off that region on multiple occasions. Though, prominent analyst Cred has reminded his followers that just because Bitcoin closed a monthly candle above a support “does not mean that price must instantly teleport higher,” adding that the close only “sets a bias for the next candlestick.”A monthly close above support does not mean that price must instantly teleport higher. The close simply sets a bias for the next candlestick. A lot can happen in a month. If April is going to be bullish, that strength will form on weekly & daily charts as well. Chill. — Cred (@CryptoCred)
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