Bitcoin(BTC) witnessed a sharp dump to $50,900 on April 18, leaving investors guessing whether to buy the dips or close their positions in anticipation of further decline. Traders should keep a close watch on the strength in the recovery as that will provide an insight about the next possible move. From the day’s highest to lowest point, the price of Bitcoin dropped by almost 15% against the U.S. dollar.
It’s been a day of excitement as BTC has shown significant strength to rise above the stiff overhead resistance at $61,825.84 on April 13, indicating another leg is about to take-off. Thus, the likelihood of the continuation of bull cycle is heavily increasing as the Bulls look almost unstoppable right now.
For the very first time in a Bitcoin (BTC) bull market, not only long-term investors but also short-term speculators who usually add to the daily sell pressure toward the end of a market cycle have become increasingly confident of higher prices as they hold on to their Bitcoin. This only adds to the already existing supply shock. If demand remains strong, this is a recipe for another leg up for the BTC price.
Bitcoin is very close to new all-time highs once again, but the final hurdle may likely take some time to overcome. However, Bitcoin’s price couldn’t break through this resistance yesterday, which has pushed it back toward its previous range. The local resistance is $60,000-63000, while the support area is at $54,000 to $55,000.
Bitcoin is still holding-on pretty nice as it remains in the range-bound, giving no hint of a deeper reversal and traders are taking this as buying opportunities. The possible consolidation in the near term may last more than expected as Bitcoin fails to recapture its all-time high-$61,825. Traders who were expecting a quick resumption of the uptrend may have been caught off guard by the range-bound movement.
All looking great here, it’s being an impressive turn-out of event for BTC, as the last candle yesterday, moved BTC to an all-time high of $61,950. It’s becoming more exciting, as the next major point of interest is at around $72,000, and this could be reached literally in a few days; only if Bitcoin can hold above few key support levels-$52,500-$56,100.