Let’s discuss how Bitcoin can perform in April, and why do we think that bitcoin price could hit 9000$.
Bitcoin witnessed both massive drop and surge in last month, the Bitcoin price dropped by 58% from 9200$ to 3800$ Last month, but later quickly recovered by 66% and closed the previous month’s candle above 6400$.
The massive crash happened on March 12 when the World Health Organization declared Coronavirus a Global Pandemic. Bitcoin recovered quickly on the next day from 3800$ and witnessed a short rally to 7000$ for the next two weeks.
Bitcoin Network Hashrate has increased by 45%
The change in Bitcoin’s mining difficulty on March 26 was the most significant percentage drop the network has seen in 9 years, and the adjustment makes Bitcoin production cheaper for all miners.Small and mid-size Bitcoin Miners returned to the network after this difficulty adjustment.
Bitcoin Network hash rate is now valued at close to 110,000,000 TH/S, and network value has been increased by 45% since its recent low from 77,000,000 TH/S. Bitcoin miners will continue mining, and we can expect a further rise in network hashrate because of upcoming halving.
Bitcoin Technical Analysis – Daily Chart
- The daily chart looks bearish, We can spot a descending triangle formation, which is a bearish triangle pattern, which triggers an average 15-20% sell-off.
- We expect Bitcoin to break down from 5800$ support, and retest 5000-5300$ area before any significant bounce on a daily timeframe.
Bitcoin Technical Analysis – Monthly Chart
- Bitcoin managed to close the last month above 50MA, but 21MA remained as resistance.
- We expect a bullish retest of 50MA, which is at 5000-5200$ price level before any significant bounce to the upside.
CME Gap above 9000$ is yet to be filled
Bitcoin filled almost every CME price gap last month, but only one large price gap is, however, to be filled. There is a 900$ price gap from March 6 at 8300-9200$, which is not filled by bitcoin price yet. Historically Bitcoin had filled most of the CME Price gaps by far, so we can expect bitcoin to fill 9000$ price gap this month.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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