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The Bulls Become Bears as Bitcoin Drops Below $5000 (BTC/USD Price Prediction: 04/05/19)

3 mins
Updated by Alexander Fred
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At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our April 4 analysis of Bitcoin (BTC), we predicted that the price would undergo a correction after spiking above $5000.Later that day, the price dropped to the first support area we suggested. Learn more here or read our latest analysis below:

On Apr 2, 2019, Bitcoin (BTC) began an upward move which took it from $4169.17 to $4790 within an hour.
On Apr 3, it made a high of $5345. The price has been gradually decreasing since. It fell below $5000 on Apr 4. At the time of writing on Apr 5, Bitcoin was struggling to reach the $5000 level.
Bitcoin Market Outlook
Bitcoin (BTC) Prices: Apr 2 – Apr 5

Bitcoin (BTC): Trends and Highlights For April 5

  • BTC/USD has been trading inside a descending channel since Apr 3.
  • Also on Apr 3, a bearish cross emerged.
  • There is resistance near $5080 and support near $4800 and $4700.

Ascending Channel

The price of BTC/USD is analyzed at one-hour intervals from Apr 2 to Apr 5 to determine Bitcoin’s current trading pattern.
On Apr 3, the price made an hourly low of $4872.96. A sharp increase ensued, followed by a gradual decrease. The price has made several lower lows. Tracing these lows gives us a descending support line: Bitcoin Descending Support On Apr 3, Bitcoin made a high of $5345. It has been decreasing since, making several lower highs. Tracing these highs gives us a descending resistance line. The resistance and support lines combine to create a  descending channel: Bitcoin Descending ChannelIt is likely that the price will keep decreasing at the rate predicted by the channel unless a surprise breakout occurs. On Apr 2, we predicted price fluctuations for Bitcoin throughout the month. They can be found by clicking the green button below:

Click for Full BTC April Analysis!

Moving Averages

To better assess future price fluctuations, we incorporate technical indicators into the analysis. We begin with moving averages.
Moving averages (MAs) are tools used in technical analysis to smooth out price action. It is a lagging indicator since it is based on past prices. The relationship between prices and moving averages can help in identifying the beginning and end of a trend.
The 21- (red) and 50- (green) period moving averages (MA) are plotted below:
Bitcoin Moving Averages On Apr 4, the 21-period crossed below the 50-period one. This is known as a bearish cross, indicating that the uptrend may be over. It appears as if a new downtrend has begun. This is the first bearish cross since the upward move on Apr 2. Using this indicator, it is likely that the price will keep decreasing at the rate predicted by the channel. Because the price of BTC/USD has also recently touched the resistance line, a return to the support is likely. This could signify both short-term and longer term price losses.

Reversal Areas

Support and resistance 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.
Bitcoin Reversal Areas The closest support area is found near $4800. This support is found within the current channel making a price drop to this level likely. A second support area is found near $4700. If price continues along this downward trend, this level will also soon be reachable within the channel traced above. It is likely that the price will continue to decrease at the rate predicted by the channel and drop to or below $4800 by next week. The closest resistance area is found near $5080. If a breakout were to occur, it would provide a likely reversal area. We do not believe this to be a possible scenario but not the most likely. However, a false breakout to this resistance area may precede a drop toward the support areas.

Summary of Analysis

Based on this analysis, the price of BTC is likely to keep decreasing at a steady rate and reach the support areas outlined above. Prices as low as $4800 or $4700 are possible. Do you think BTC will drop towards the second support area? Let us know your thoughts in the comments below!

Click for 2019 BTC Predictions!

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.
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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 ConditionsPrivacy 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)