At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our April 3 analysis of Bitcoin (BTC), we predicted that the price would undergo a correction after spiking above $5000. A correction followed later that day. What will happen next? Find out below:
On Apr 2, 2019, Bitcoin (BTC) began an upward move which took it from $4169.17 to $4790 within an hour. Price has gradually increased since.
On Apr 3, it appears that Bitcoin reached a peak when a high of $5345 was reached. Subsequently, prices retraced as part of a short reversal.
At the time of writing, slight gains above $5000 were observed.
Bitcoin (BTC): Trends and Highlights For April 4
- BTC/USD had been trading inside an ascending channel since Apr 2.
- Bitcoin broke down from this channel on Apr 4.
- The breakdown occurred with significant volume.
- There is now support near $4800 and $4700
Ascending Channel
The price of BTC/USD is analyzed at one-hour intervals from Apr 2 to Apr 4 to determine Bitcoin’s current trading pattern.
On Apr 2, the price made an hourly low of $4680.36. It has been gradually increasing since, making several higher lows. Tracing these lows gives us an ascending support line:
On Apr 2, Bitcoin made a high of $5080 before closing at $4738.61. Since then, several market cycles have been completed and the price has made several higher highs.
Tracing these highs gives us an ascending resistance line.
The resistance and support lines combine to create an ascending channel:
Bitcoin broke down from the channel on Apr 4, 2019.
Was this a valid breakout or will Bitcoin rebound inside the channel?
Volume
To better assess future price fluctuations, we incorporate technical indicators into the analysis. We begin with volumeVolume is a tool used by traders which measures the amount of an asset trading in a given period of time. Combined with breakouts and breakdowns it can be used to confirm the validity of a move.
Volume is shown alongside price below:
On Apr 3, the price reached a high of $5345. A rapid downward move began which took it to a low of $4800 in a span of three hours.
The breakdown occurred at a significant volume—more than twice the average hourly volume.
Using this indicator, we can conclude that the breakout was legitimate and the price is likely to create new resistance and support areas below the channel.
Reversal Areas
Support areas are created when the price revisits the same level several times. They can be used to find likely areas of reversal if a breakdown occurs.
The closest support area is found near $4800, followed by the support area near $4700.
It is likely that the price will fall to at least one of these areas before it creates a different trading structure. We also believe it is possible that BTC/USD rises to touch the support line of the channel before falling.
Summary of Analysis
Based on this analysis, the price of BTC is likely to undergo a slight correction and decrease to the area outlined above It is not yet clear on what time-table this will occur. Do you think BTC will drop towards the support area? Let us know your thoughts in the comments below! Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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