Bitcoin spent the majority of Monday consolidating in the support area in the $8,700 – $8,850 range after partially recovering from Sunday’s weekly close correction. Amid this high-volatility, how Bitcoin will handle its third halving, due in a week, remains highly speculative at this juncture.
One prominent analyst and industry-insider, however, is optimistic that the BTC rally that kicked off after its March 12 debacle will be lasting and will help to attract a new wave of investors. More on that and other big news from Monday in our cryptocurrency weekly roundup for May 4, 2020:
Galaxy Digital CEO Expects the Bitcoin (BTC) Rally to Last
Mike Novogratz, CEO at Galaxy Digital and self-proclaimed Bitcoin bull has said that the Bitcoin price rally is here to stay and will mostly draw its power from the influx of a new wave of investors — the signs of which already seem to be forming.
Social media metrics and volumes have driven the price of BTC up by roughly $1,500 in a matter of two days in late April.
Google Data Shows Bitcoin Halving Interest has Reached a Fever Pitch
According to data from Google Trends pointed out by @runtheirstops on Twitter, search interest in the Bitcoin halving is now four times the level seen before the 2016 halving.
Indeed, as previously reported by BeInCrypto, Bitcoin halving searches have been steadily climbing over the past few weeks.
Bitcoin Analysis for May 4, 2020
The BTC price is currently trading in a range between $8,600 – $9,400. If the Wyckoff schematic is followed, the price will make a low below the support level of this range, which is known as the ‘show of weakness.’
Afterward, an upward move will likely follow that takes the price above the original high, otherwise known as the ‘upthrust.’
- The Bitcoin price is likely following a bearish Wyckoff distribution pattern.
- BTC is possibly following a fractal from August.
- There is strong support at $,7700.
Crypto Price Analysis May 4: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, XTZ, LINK
- The ETH price outlook is bearish. The closest support level is found at $170, possibly supported by the 25-day moving average (MA).
- Ripple’s (XRP) RSI is bearish since it has dropped below 50 and has not generated any bullish divergence, which would be a sign of a reversal.
- The BCH price has reached the critical resistance level around $275 thrice since March 9 — each time in the form of a long upper-wick that has been sold up quickly. The price was once again rejected by this resistance line and seems to be heading towards support.
- For BSV, the next support line is found at $185 where it is likely to consolidate and initiate a bounce.
- The closest resistance area for LTC is found between $48-80, coinciding with the resistance line of the channel.
Open Interest on Bitcoin Futures Breaks Past All-Time High
On a casual look, open interest on Bitcoin futures contracts is gaining new highs.
This means futures markets and confidence in Bitcoin are both picking up steam yet again. However, this may not be what it seems. Some analysts are of the view that the last new all-time highs for OI were also the last two major tops. Others seem certain that a dump is coming.
Crypto Transactions Blocked by Unnamed European Bank
A Reddit member has turned to the forum for help after a bank blocked their cryptocurrency transactions. Not much information was shared except for the fact that the user is from a small European country, and that they ran into a wall after attempting to convert cryptocurrencies to fiat.
The bank apparently ‘blocked all trading with crypto,’ leaving the user unable to transfer money to their bank account.