Trader told what to expect from the price of bitcoin

Practicing trader and ForkLog Hub resident Pavel Gromov talks about the current situation on the market, alsoknown as "Chief by crypt."

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What is the market situation?

After March 17, the price of Bitcoin did not fall below $4,700. In the period from March 18 to March 23, it did not react to the fall of the S&amp;P 500 index, which speaks in favor of a decrease in the correlation with the stock market.

This week, Bitcoin has fixed above $ 6500, but attempts to storm $ 6800- $ 7000 have so far been unsuccessful.

There were few sellers below the $5,000 mark.&#171;Weak hands&#187; leaked coins purchased above $8,000 into the hands of confident market participants. Those who bought the asset during the collapse of March 12-13 are not going to sell it at low prices.

Whales or newcomers: who triggered the recent collapse of bitcoin

This week, central banks flooded the economymoney. The USA was especially distinguished, which today claim a $ 2 trillion economic assistance package. Obviously, pouring such money into a falling economy will lead to strong inflation, the depreciation of fiat money and the demand for scarce assets.

Bitcoin &#8212; just such an asset.Demand for it is always growing in countries where the national currency is rapidly depreciating. The TOP 3 countries with the largest number of Bitcoin users include countries with exactly these problems.

Inflation will begin when the panic around the coronavirus ends. Then unsecured money will start to spend. I think that inflation will be recorded already in the second half of the year.

I expect Bitcoin to consolidate above $7,100 next week. Alternative &#8212; continuation of the sideways trend in the range of $6400-$6800.

With short-term market directionwill be determined today during the American session on the stock market. If the S&amp;P 500 continues to grow, Bitcoin will join it. If there is no correlation, a decline below $6200-$5800 is unlikely.

What do the graphs say?

On the daily chart, the range, which appears to be sideways in smaller time periods, is part of the upward channel.

For buyers, the key level is $ 6250- $ 6350. As long as this range is intact, continued growth is possible to the levels of $ 7300- $ 7400.

In the event of a breakdown of the trend line, the following significant support levels are at $ 5700 and $ 5000.

TradingView Chart

On a 4-hour timeframe, the price is clamped in the range of $ 6480- $ 6900 for three days.

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The best solution for traders &#8212; wait for the exit from this range. There is accumulation at the upper limit of the general range ($4450-$6900). The output will likely be abrupt:

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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.