The Bitcoin price is in a relief rally after it declined sharply yesterday. The BTC is trading at $39,840, which is 33.6% above its lowest level yesterday. Its market cap has jumped to more than $748 billion.
What happened: The BTC price dropped sharply yesterday after China started a crackdown of companies that offer the service. Today, the cryptocurrency’s price has recovered as investors rush to buy the dips. This is happening after some key instititions announced that they would stick with their BTC holdings.
For example, Cathie Wood of Ark Invest said that she expected its price to jump to $500,000 in the long term. Similarly, Elon Musk said that Tesla will keep its holdings. The same is true with Michael Saylor, who said that he expects to keep his Bitcoins.
BTC is also rising after minutes by the Fed showed that the members have started discussing tightening. While this is a bearish thing for BTC prices, analysts believe that it could push prices higher since tightening has now been priced in.
Bitcoin price prediction
The four-hour chart shows that the BTC price has jumped from yesterday’s low of $29,977 to almost $40,000. On the four-hour chart, the price is below the 50-day moving average. It is also below the important resistance level of $47,000, which was the lowest level on April 25.
Therefore, at this point, it is a bit difficult to predict whether the Bitcoin price will last. For it to happen, bulls will need to push it above the 25-day moving average at $42,500 and the 50-day EMA at $45,000. However, a drop below yesterday’s low of $29,977 will signal that there are still sellers in the market. This will open the possibility of the price falling to $25,000.
BTC price chart
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