Trader told how Bitcoin will behave after correction

Practicing trader and ForkLog Hub resident Pavel Gromov talks about the current market situation.

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As well asassumed in a previous review, consolidationBitcoin above $ 7,800 led the main cryptocurrency above $ 8,000 in a few hours. Reality exceeded expectations, and during the day we saw Bitcoin at $ 9400.

Bitcoin price breaks $ 9,000 mark

After that, there was a correction to $ 8500, where the asset was met by buyers. By the evening of April 30, the price stabilized in the range of $ 8650- $ 8850, where it is at the time of writing.

Market capitalization returned to the values ​​of early March. The consequences of the collapse of March 12-13 in the market can be considered eliminated.

Immediately after the crash, I gave a long-term forecast for Bitcoin, which was fully justified — since then, Bitcoin has doubled.There is a correlation with the stock market when it is growing.Negatives, such as negative oil prices, are ignored by cryptocurrencies.

Above $8,000, those who sold bitcoin below $7,000 — the market crowd — began to return to the market.There is no logic or rationality in the actions of the crowd.

Growth to $ 8000 was organic, and the movement of $ 8000- $ 9400 has already adjusted in half. I think that without some extreme negative bitcoin below $ 7,800- $ 8,000, we will not see soon.

There were no shocks in the traditional market.The reports of the IT giants did not bring any special surprises - the general mood is positive, although Amazon showed a profit below expectations.

The S&P 500 is close to 3,000, although there is no improvement in the real economy.And these are only reports for the first quarter, in which quarantine and other restrictions began in March.Obviously, the reports for the second quarter will be much worse.

Over 30 million Americans have applied for unemployment benefits over the past 6 weeks. But the stock market has less and less connection with the real economy.

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The main reason for growth is the injection of money into the economy.And there will always be one.

Today, the market is waiting for the report of oil companies.But I wouldn't be surprised if the S&P 500 stays above 2,900.

If bitcoin fixes above $8800 in the American session or before it, then we go to $9000-$9200 with a possible test of $9400.If not, we stay today and on the weekend in the range of $8500-$8800.

What do the graphs say?

On April 30, Bitcoin set a maximum at $ 9,460, slightly not reaching the expected $ 9,600.

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From $ 9,460 profit-taking followed. The price has adjusted to the mark of $ 8401.

The nearest support level at the moment is $8749.If $8588 does not hold, then we can expect a decline to the $8000-$8200 zone.

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The main resistance zone is $8956-9020.Continue to the resistance at $9400-$9600.

On April 30, BTC tested the upper boundary of the medium-term downward channel.

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The resistance was the level of $ 9460, from which there were large fixations. The first level of support at $ 8401 buyers retained. The $ 8400- $ 8600 range is now a key support area.

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If buyers can not hold it, then the decline will continue to the level of $ 8000- $ 8238.

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The main resistance on the daily timeframe is the zone of $ 9000- $ 9165.

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Only if we fix above this mark, we can talk about continued growth to the previous resistance ($ 9460). In the event of a breakdown of $ 9,460, medium-term goals lie above $ 10,000.

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Attention!

Financial market forecasts are privateopinion of their authors. Current analysis is not a guide to trade. ForkLog is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.