In our Saturday analysis of Bitcoin, Ethereum World News had advised a ‘wait and see’ approach with respect to the price action of BTC. This was due to the fact that the 50 and 100 MA on the 6-hour chart looked set to act as temporary support for the King of Crypto till today, Monday, April 6th.
- Bitcoin (BTC) has this morning reclaimed the $7,000 value once again.
- Its movement is amidst global reports of some countries winning the war against the Coronavirus.
- With halving only days away, Bitcoin might continue with its upward trajectory.
At the time of writing this, the Chinese city of Wuhan is coming back to life after several travel restrictions were lifted by the Government. Residents with a ‘Green health code’ will be allowed to leave Wuhan and the surrounding province. Additionally, the countries of Italy, Spain and Germany, have recorded a decrease in the daily rate of infections in their territories as a result of continued efforts to reduce the spread of the virus.
This reaction of BTC to positive news regarding the war against the global pandemic is similar to an earlier analysis where we postulated the following theory:
…a BTC recovery will only become possible once good news about beating the virus globally, starts to hit the airwaves and internet.
What Next for BTC/USDT?
6-Hour BTC/USDT chart courtesy of Tradingview.com
Further visiting our favorite 6-hour time frame on the Binance BTC/USDT chart, we observe the following.
The $6,900 resistance level has now been broken and is acting as Bitcoin’s short term support. $7,000 needs to be maintained at least for today for it to turn to some level of confident support. Moving up, $7,200 and the $7,400 zone provide the next level of resistances.
However, trade volume is still considerably low but might improve as the Western hemisphere wakes up in a few hours.
On a Macro level, Bitcoin might go on to reclaim $8,000 and maybe $9,000 as the Bitcoin halving is only 37 days away.
As with all trading analysis, readers are advised to do their own analysis and to use appropriate stop losses to safeguard their leveraged positions.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.