Bitcoin price stepped up, bulls will propel the benchmark cryptocurrency up to a high of $7,300

By Selena On Apr 3, 2020

On March 13, the Bitcoin price reached a low of $ 3,850. While this initially seemed to cause a breakdown below numerous support levels, the price immediately began an upward move and proceeded to reach a monthly close above $ 6,000. This leaves the door open for the possibility of bullish continuation.

Bitcoin forms massive “scamwick” in the fleeting movement to $ 7,300

With the price of Bitcoin racing to highs of $ 7,300 before finding itself caught within a downtrend that has since led it to its current price of $ 6,750. This movement resulted in what appears to be a highly bearish four-hour candle, with the rejection at these highs being a sign that the cryptocurrency’s buyers remain weak.

Josh Rager – a prominent crypto analyst – explained a daily close below $ 6,800 could be a dire sign for Bitcoin’s mid-term trend, potentially opening the gates for significantly further downside.

Rager stated:

$BTC 4 hr candle is ugly right now

Closing below $6800s wouldn’t be pretty – would like to see reclaim and hold previous December range above $6900

Price came down and tapped $6700 support, we’ll see if price can push back up from here – daily close still hours away pic.twitter.com/oeGe8j6fkG

— Josh Rager ? (@Josh_Rager) April 2, 2020

It is important to note that Bitcoin is still trading up from the intraday low of around $ 6,200, meaning it can even close a neutral or slightly increase the daily candle if the buyer can support it around. Its current price.

The chaos has generated nearly $ 50 million in liquidation hourly on BitMEX

A by-product of today’s volatility is a significant amount of liquidation of positions on the popular cryptocurrency trading platform BitMEX. According to data from Skew, the total hourly liquidations for the time in which this fleeting pump to $7,300 and subsequent retrace occurred totals at nearly $ 50 million.

Source: Skew

As for perspective, this marks a massive escalation from the hourly average seen in the past few days, currently at $ 1.9 million. If volatility is becoming more prevalent in the coming days, the average will likely increase significantly.

Mike Novogratz: I might abandon BTC if Bitcoin price doesn’t reclaim its ATH this year

In an interview with the latest CNBC, Mike Novogratz, Galaxy Digital CEO, said that he could abandon Bitcoin if its price did not reach new highs this year.

“This is the year for bitcoin,” says @novogratz, and if it doesn’t go up now, “I might just hang my spurs.” pic.twitter.com/KbUQfMzzEI

— CNBC’s Closing Bell (@CNBCClosingBell) April 2, 2020

When Bitcoin hit a snag in March, Novogratz opined that confidence in just about everything evaporated. Nevertheless, he did claim that 2020 could be Bitcoin’s big year. With central banks intensifying monetary stimulus before the recession appears to be an economic recession, it’s hard to imagine a better environment for Bitcoin to grow weakening fiat types.

Yet Novogratz may eventually abandon Bitcoin if there were no price increases this year.

Novogratz said:

“If Bitcoin doesn’t go up now by the end of the year, I might just hang my spurs.”

What will the Bitcoin price be by the end of the year?

However, the possible increase is likely to take some time to transpire. Cryptocurrency trader and analyst @davthewave stated that the Bitcoin price is expected to consolidate for the rest of the year before it finally breaks out and moves back into five digits.

May be looking at consolidation within the triangle formed for the rest of the year before a sustainable move higher… pic.twitter.com/U90wuzSpi6

— dave the wave (@davthewave) April 2, 2020

To make the prediction, the assumption is made that the March 2020 low marks the same point in the current market cycle as the January 2015 low did for the previous one. We have made the same claim previously and used it to predict the price on a future date.

We have outlined the two bottoms in the chart below, marked by the black arrows:

Source: TradingView

Using this chart, there are two main similarities between these two lows:

It falls between the 0.236-0.382 fib levels of the entire previous move
It is very close to the curved ascending support line

While in the March 2020 bottom the price decreased considerably below this line, it proceeded to close slightly above it. After the January 2015 bottom, the price consolidated for 273 days before accelerating its rate of increase.

If the same thing transpires this time, the price will consolidate until the end of the year. However, because the support line is ascending, the price will likely be around $10,000 at the time.

Another well-known trader, @Sawcruhteez, has a similar opinion, and he believes that a continued consolidation would be quite bullish for the future of the BTC price movement. He has also outlined a possible range in which the price will be trading for the rest of the year.

If $BTC ranges over the next few months it would be extremely bullish. ? pic.twitter.com/G95KyFVthD

— Tyler D. Coates (@Sawcruhteez) April 1, 2020

The movement inside the range likely comes from the bottom that we discussed in the section above.

In the image below, we have placed the two bottoms side by side to show the outlined movement if the price acts in the same way as it did in 2015. The price is expected to reach the resistance line in May and September and the support line in June and October, before breaking out in December.

Source: TradingView

To conclude, the March 2020 bottom shares numerous similarities to that reached in January 2015. If the movement afterward is also similar, the BTC price will consolidate/increase gradually until the end of the year, before breaking out and accelerating its rate of increase.

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