April 21, 2020 | AtoZ Markets - Bitcoin is currently trading around $6800 area and trying to decline further. The price is also broke below the dynamic level of 20 EMA on the intraday chart. BTC current price action is quite volatile and indecisive, which may sustain further in the process.
Bitcoin Consolidating Below $7000 - Are Bears Still in the Market?
Bitcoin ASIC manufacturer, MicroBT, reveled its new mining hardware yesterday April 20. The company claim that the hardware possesses a hash rate of 100 terahashes per second (TH/s). From the launching of this product showed that competition is increasing within the major ASIC manufacturers, especially when Bitman's pre-sale of its S19 Antiminers. Moreover, the MS30S++ and the MS30+ is the upcoming M30 series of Bitcoin miners. Besides, MS30+ purportedly delivers 100TH/S with 34J/TH of efficiency.
On the other hand, U.S. Senate Republican and Democrat proposed a $500 billion stimulus package for the state and municipal governments on yesterday. That is clear that the next COVID-19 relief will not cover money for revolving local authorities. Moreover, Republican Senator, Bill Cassidy said on a press conference, "The current bill coming out will not have this aid, or any aid, for states and municipalities. It kind of makes sense, though, because we don't yet know what the toll is."
Bitcoin Bulls Still Holding the Price Above the Descending Channel
According to the Daily chart, BTC is currently residing near $6800 area after breaking below $7000 with a daily candle. Bitcoin consolidating below $7000, but bulls are still holding the price above the descending channel. The price also broke below the dynamic level of 20 EMA, and the Tenkan line.
Image: Bitcoin Daily Chart
As per the current price action context, if the price can have a daily bullish close above $7000 area, the bulls may push the price higher towards $8500 event level. Alternatively, if the price breaks below $6500 area with a daily impulsive bearish close, the bears may push the price down towards $5500 in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, along with the Tenkan line. It may act as a strong resistance and push the price down. In contrast, if the price can break above the dynamic levels, bulls may gain momentum in the process. Besides, the Kijun line is residing far below from the price, which may act as a strong support if the price pushes down further. Moreover, the MACD lines are residing below 0.00 level, and gradually rising upward, which indicates bulls are still in the market.
To conclude, Bitcoin has been quite indecisive from the past few weeks. After retracing nearly 50% of the recent drawdown, BTC currently showing bearish pressure. An impulsive daily close is required to find a definite trend in the coming days.