A broad-based crypto selloff lead by BTCUSD is playing out in the market on the first day of the Easter holiday. Bitcoin prices fell below $7,000 on Friday after persistent attempts to take the BTCUSD above $7,400 in the past week failed. This selloff follows reports of a massive transfer of Bitcoin to individual exchanges to the tune of $75million. Projections are that the Bitcoin will be sold, which in theory would lead to a drop in Bitcoin prices on increased supply.
These price moves are occurring with just a month to go to the much-anticipated Bitcoin halving event. Reports monitored from whale alert, a site that typically follows such massive movements of Bitcoin and other cryptocurrencies, indicate that a total of $80 million in BTC was moved in six large transactions to the top exchanges yesterday evening. This whale sale may be the factor that is precipitating the current selloff.
Download our Q2 Market Global Market Outlook
Technical Outlook for BTCUSD
The latest Bitcoin price action from March 13, 2020 to date on the daily chart shows that the BTCUSD has traded within the confines of an ascending channel. This channel allowed price to hit the horizontal resistance at 7420.72 on April 7, 8 and 9. However, the price move has faced rejection and Bitcoin prices are trending back below the 7,000 mark. This downward leg has also violated the 6918.72 support level. However, there two successive daily candles must close below this level to confirm the breakdown of this level. If this happens to occur, we could see Bitcoin pushing towards 6596.16 initially, with further support seen at 6335.15 and the lows of March 21, 29 and 30 at 5820.12. However, the lower barrier of the channel meets the support at 6596.16. Therefore, a breakdown of the horizontal support and the channel’s lower border is required for the downside targets to become relevant.
On the flip side, the arrest of the slide at current levels allows BTCUSD to retest the 7420.72 price level once more. If the price can find support at the intersection of the channel’s lower border and the 6596.16 price level, we could then see 6918.72 also becoming relevant as an immediate upside target.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.