Bitcoin rebounds after starting the month of April down. Let's analyze together the future prospects for the BTC price.
Status of Bitcoin (BTC)
While Bitcoin saw selling pressure in the first days of April, the price of the parent cryptocurrency recovered after hitting a new low of $64,500. In fact, it reached $72,000 this Monday. It appears that this price level has acted as resistance, with BTC struggling to break above it. Indeed, this Tuesday morning, the price of Bitcoin fell below the threshold of the old resistance identified at $71,270. At the time of writing, Bitcoin is trading around $70,000.
Bitcoin is holding slightly above the value zone around $69,800, which could act as support. Overall, Bitcoin's trend remains bullish, as evidenced by the 50 and 200 day moving averages. Regarding market dynamics, a slight rebound is observed, although this is not yet significant, as indicated by the oscillators. This phenomenon could prove harmful in the long term.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (BTCUSDT)
Open interest in BTC/USDT contracts has followed its course direction. Indeed, we can see that the latter increased before falling slightly this Tuesday, April 9 in the morning. Interestingly, the majority of liquidations recently have been liquidations of short positions. Coupled with a subtle rise in the funding rate, this indicates that interest in Bitcoin perpetual contracts has been predominantly long of late.
The heat map of liquidations over the past month indicates that BTC/USDT crossed a significant liquidation zone, located around $72,000. Currently, the price of Bitcoin appears to be showing selling interest at this level, marking a slight distribution phase. Now, the most significant liquidation zone above the current price is in the price range between $73,000 and $75,000. Below the current price, we can note $69,000 and lower, $64,500. If the market approaches these levels, we could see a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. These areas therefore represent a major point of interest for investors.
Hypotheses for the price of Bitcoin (BTC)
- If the price of Bitcoin manages to stay above $69,000, we could anticipate a bullish continuation up to the $73,000 level. The next resistance to take into account, if the bullish movement continues, would be $74,000 or $75,000 and above. At this point, that would represent an increase of more than 7%.
- If the price of Bitcoin fails to maintain above $69,000, we could envisage support for buying interest around $67,000. The next level to consider, if the bearish movement continues, would be within a price range around $64,000 and $63,000. At this stage, this would represent a drop close to – 9%.
Conclusion
Facing the turbulence of the first days of April, Bitcoin is showing an uptrend supported by signs of resilience above key support levels. Despite the immediate challenges, there is every indication that buyers dominate the market. Nevertheless, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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