26.04-03.05 BTC / USD price analysis and forecast for upcoming week

The total market value of all cryptocurrencies is almost $2.3 Trillion. The crypto-landscape has been strongly dominated by Bitcoin alone, being the most dominant cryptocurrency on the market. However, during this year, the second-largest cryptocurrency has begun to take over some of Bitcoins' dominance. Ethereum has gained almost 16% of the market dominance, resulting in a clear decline in Bitcoin's dominance. At the time of writing, the dominance of Bitcoin is 47.7%. This may be one of the determining factors why Bitcoin's price movement in recent weeks has been more than half that of Ethereum.

The price of Bitcoin may also be affected by the negative undertones of the big players on Wall Street. For example, US-based investment giant Goldman Sachs said that Bitcoin's energy consumption, other cryptocurrency competition, user-friendliness, etc., are a threat to Bitcoin's long-term store value. Similar negative undertone comments were seen in January when the price of Bitcoin was relatively "weak." It may just be a giant strategy to push down the price of Bitcoin.

The recent power outages in China, which resulted in difficulties in Bitcoin mining (read more). Also, the news that Tesla sold Bitcoin probably dampened asset price movement.

BTC / USD technical analysis

Picture 1. BTC/USD 4H-graph


Moving Averages

250MA (green); 50MA (blue); 21MA (orange). In the case of a moving average strategy, the intersections of the lines are generally considered. The lines of the moving average are in the correct relationship with each other.
Example: A strong bullish market trend, in this case, is when the price trades above 250MA and the 50MA and 21MA trade above it. Also, 21MA must be higher than 50MA.

  • Price trades above 21MA, 50MA, and 250MA - Bullish
  • 21MA cross between 50MA and 250MA - Bullish
  • 50MA moving upwards, and during this week, it is likely  to see 50MA crossing above 250MA. When this happens, we are again in a solid bull market.

RSI

  • No divergence in favor of bulls. Relative Strength Index is not in overbought area - Neutral
  • Divergences are in favor of bears, which may result in a short-term price correction. – Short-term bearish.

Support / Resistance / Trendlines

  • Beginning of last week, Bitcoin started strong, breaking through the resistance range of $50,350-52,000. - Bullish
  • This week had a strong beginning as well, breaking the trend line upwards. – Strong Bullish.
  • Bitcoin is trading within a relatively strong $57,600-59,700 resistance zone at the time of writing. For the resistance zone to become the support zone, Bitcoin price must close above the aforementioned area.

In conclusion

The price of Bitcoin has been on an upward trend, but last week's negative news dampened larger gains, as did Ethereum, the second-largest cryptocurrency.

In the big picture, the price of Bitcoin is strong. It is important to see how the asset price is going to move this week. Does a strong resistance area become a strong support area or not. If the price breaks through the mentioned resistance area, we can expect the Bitcoin price to touch, if not break, the previous all-time high.

Download the Change app and buy Bitcoin and other cryptocurrencies at the best prices on the market!

Disclaimer: This article is for informational purposes only and is not intended as an investment recommendation. Change is not responsible for decisions made based on this information. All investments involve risks, and all investment decisions are entirely at your own risk. The past and future performance of the asset class and the above financial ratios should not be considered a promise or indicator of future returns.

Join over 60,000 people