Todays Bitcoin price drop below USD $7k has taken some by surprise, yet it is causing little concern among analysts, In fact, the mood is optimistic, as most believe that the market will recover quickly, with the flagship crypto currency soon surging much higher.

Todays market dip has not caused a notable shift in Bitcoins general upward movement since mid-March. In fact, a look at the chart from CoinMarketCap shows that drops of $200-400 have taken place several times in the past few weeks, only to rebound relatively quickly. Thus, if the pattern is to hold Bitcoin would need to hover around $6,900 for a day or two before coming back up.

There are some analysts that seem to think that prices may remain low for a few days, yet most seem to think that the price will not go much lower, if at all. For example, Pierre has tweeted:

Although those that were hoping that the price would remain above $7k may be disappointed, the mood is that there is little concern for a major drop.

Analysts of all types remain very firm in their assertions that Bitcoin stands to gain significantly due to a range of upcoming events. For example, much discussed block reward halving will re-shape the market, making existing Bitcoins more valuable. It seems as if everyone agrees that this one simple change in the protocol will have a major market impact.

Also, fear continues to grow that the U.S. Federal Reserve will continue to devalue the Dollar in its attempt to alleviate the growing economic crisis. In fact, few now believe that the Fed will stop at just 2.3 trillion. Many point to the fact that this amount is a mere drop in the bucket when compared to other government liabilities such as the national debt and unfunded entitlements.

Meltem Demirors, Chief Strategy Officer at CoinShares, has tweeted:

The simple implication is that before long the government will be forced to print an exponentially greater amount of cash in order to pay for these programs. Such a move will cause much higher inflation, and all but certainly drive more Americans into crypto investment. Bitcoin would clearly benefit most.

Thus, there is a growing sense that Bitcoin presently sits at what could be a bargain-basement price. Should the current patterns continue, now is clearly the time to invest.

Do you think this current dip is a good Bitcoin buying opportunity? Add your thoughts below!

Images via Shutterstock, Twitter @Melt_Dem @pierre_crypt0, BTC/USD chart by Tradingview

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Why Bitcoin Analysts See This Dip As Incredible Opportunity To Buy - Bitcoinist

We spoke with Mike Alfred, Co-Founder and CEO of Digital Assets Data, about weekly happenings on the market and the correlation between Bitcoin and gold.

With the Dow and S&P 500 rallying two days in a row this week off the back of positive headlines that indicate the slowing spread of the coronavirus, investors seem to be more enthusiastic than before. Even United States President Donald Trump claimed that, over the previous four days, the stock markets increased the most in more than 50 years.

This means that investors confidence in the countrys economy is improving and that the demand is increasing, Trump asserted at the Coronavirus Task Force press briefing.

Theres something good going to happen, I really believe that. We have to get back, he stressed.

However, investors in cryptocurrencies might be surprised by the Bitcoin and other altcoins movements these days. Mike Alfred, CEO and Co-Founder of Digital Assets Data, fintech data company that builds enterprise-grade software for crypto hedge funds, commented on how Bitcoin prices are expected to follow suit. Mike is an experienced entrepreneur, previously founding Brightscope, a financial information company, where for nine years he and his team provided insights to traditional asset managers, brokers and financial advisors.

Alfred said:

It seems like the Bitcoin community is still relatively gun shy and nervous about a retest of the lows, which is fairly bullish for the price. I foresee those who expect prices to go back down to $3,800 will have to capitulate and buy, which will give Bitcoin prices another boost over the next few months. The Bitcoin community tends to be unnecessarily bearish every time Bitcoin hits trough prices and almost invariably the market does the opposite thing of what seems most logical in the short term with prices bouncing back up.

However, since we are listening to the stories of Bitcoin being digital gold, we were pretty surprised that the largest cryptocurrency seemed to follow the traditional stock market more than the price of gold.

Alfred explained to Coinspeaker that, since the beginning of the year, gold has kept a positive correlation with Bitcoin, with this correlation spiking to as high as 55% during the crash (Black Thursday) that we saw across most markets in mid-March.

He said:

Over this same time period we saw the S&P 500 dramatically increase in its correlation with Bitcoin as well after showing a negative correlation earlier in the year. Since the crash, both gold and the S&P have stayed highly correlated to Bitcoin, giving validity to the old saying that during a crisis correlations go to one.

Alfred also noted that when looking at short time horizons during a time of crisis like we are currently seeing with the pandemic; it can be tough to look at Bitcoin and claim that it is a safe haven since its price fell (as did golds) as investors with weak hands sold off what they perceived to be risky assets.

He added:

What I believe we will see over the medium to longer term is Bitcoin being seen as a safe haven and hedge against the types of irresponsible monetary and fiscal policy we are seeing from central banks and governments in response to the pandemic.

We have to mention that Bitcoin has wiped out many traders over the last few weeks. The intense selloffs coupled with extreme volatility are shaking weak hands out. We know this because the average lifespan of coins that moved in March is around one month. This suggests that those who bought between January and February this year have capitulated. At the time of writing, Bitcoin was falling by 1.05% to $6,860.21.

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Gold and S&P 500 Stay Highly Correlated to Bitcoin During... - Coinspeaker

The number of Bitcoin addresses with a minimum balance of 1 has been on a rise despite the bearish sentiments in crypto markets.

While the derivatives market was predominantly bearish after the panic drop due to coronavirus on 12-13th May, the increase in BTC holdings projects positive on-chain fundamentals.Research analyst, Ria Bhutoria, currently with Fidelity Digital Assets tweeted,

The number of addresses with at least 1 BTC has consistently been establishing new highs every 1-2 days since March 22nd

Glassnode Studio which published the metrics notes,

Number of Addresses holding 1+ coins just reached an ATH of 802,715.000 Previous ATH of 802,567.000 was observed on 08 April 2020

Moreover, the SOPR (Spent Output Profit Ratio) is currently, at a critical juncture around 1. The indicator was introduced by Renato Shirakashi who notes in the blog post,

First of all, SOPR appears to oscillate around the number 1.Secondly, during a bull market values of SOPR below 1 are rejected, while during a bear market values of SOPR above 1 are rejected.

The drop which began in March has seen rejection from the number 1, twice and is now trading around 1. Rejection from this level could will continue to keep the bearish sentiments alive.

Moreover, the on-chain metrics for Ethereum has been consistent despite the drop in prices as well. The number of transactions is above the bear market during the latter half of 2019.

Ethereum [ETH] Daily Transactions Chart (Source)The number of unique addresses is also rising linearly. However, the number of addresses with more than 1 ETH witnessed a huge drop at the beginning of this year.

Moreover, the current risk-off environment as the economy is heading into a recession builds a strong case of cryptocurrenices. However, the risk associated with the investment is equally high.

Nevertheless, the number of ETH addresses with a balance of more than 10 has been stable, projecting a healthy long term view.

How do you think the price will be affected in the short-term? Please share your views with us.

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Bitcoin and Ethereum On-Chain Analysis: Consistency Persists with Short-Term Bear Threat

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The number of Bitcoin addresses with a minimum balance of 1 has been on a rise despite the bearish sentiments in crypto markets.

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Nivesh Rustgi

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CoinGape

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Bitcoin and Ethereum On-Chain Analysis: Consistency Persists with Short-Term Bear Threat - Coingape

Alex Dovbnya

The operators of cryptocurrency Ponzi schemes are not immune to falling prices, but phishing and blackmailing scams are on the rise

According to a new report unveiled by blockchain sleuth Chainalysis, the revenues of cryptocurrency Ponzi schemes have cratered 33 percent since March 8(from $4.2 to roughly $2.9 mln).

However, phishing, blackmailing, and email spamming scams are picking up the slack since the coronavirus pandemic represents a goldmine of new stories for fooling gullible victims.

At first blush, it might seem that those who typically fall for crypto investment shams adopted a more frugal attitude towards their money, with 17 mln people filing for unemployment benefits only in the U.S.

However, Chainalysis explains that the 33 percent drop in revenues has a more prosaic reason -- the crypto market crash that happened in the middle of March.

The number of transfers to some well-known Ponzi schemes actually saw a significant increase last week, but scammers are profiting less from every transaction due to lower prices.

Ponzi schemes and investment responsible for 95 percent of all losses, but blackmailing and phishing scams are actively chipping away at their share during the COVID-19 pandemic.

Fraudsters are impersonating the WHO, the NHS, and other health organizationsto collect coronavirus donations with the help of fake e-mails.They might also threaten to infect you or your family with the novel virus.

As reported by U.Today, Interpol warned about cybercriminals attacking hospitals with Bitcoin (BTC) ransomware.

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Bitcoin (BTC) Ponzi Schemes Take Massive Hit During COVID-19 Pandemic, but You Have to Watch Out for - U.Today

The Bitcoin Association Switzerland announced the launch of a new Bitcoin-backed payment token on Tezos blockchain, called tzBTC, a token type that has recently started gaining prominence.

The token, announced on Wednesday, is backed one-to-one by Bitcoin and follows the FA1.2 token standard of the Tezos blockchain. The token will be able to interact natively with the decentralized applications on the Tezos network which opens up new opportunities in the world of decentralized finance.

Bitcoin Association said that it is the first smart contract application focused on decentralized finance built on Tezos mainnet. Both Tezos Foundation and Bitcoin Association have worked on developing the token and Bitcoin Swiss has been named as the project gatekeeper.

The project also witnessed participation from four Swiss companies- Taurus Group SA, Swiss Crypto Tokens AG, inacta AG and LEXR AG. All will act as project keyholders. The companies will be authorized to mint and burn the tzBTC tokens. The activity will be regulated by the Bitcoin Association Switzerland.

Head of Bitcoin Association Switzerland, Lucas Betshart said that the token will be regulated under Swiss laws. He added,

The tzBTC brings the brand and liquidity of Bitcoin to the Tezos blockchain and gains the potential for rich functionality made possible by Tezos smart contracts.

The official website of the project states, tzBTC brings the liquidity and battle-tested brand of Bitcoin (BTC) into the Tezos ecosystem, enabling BTC-backed use-cases on Tezos. Developers on Tezos can use tzBTC to enable novel financial applications on the Tezos blockchain.

The gatekeepers of the projects will be participants that accept Bitcoin from users and allocate tzBTC to them in return. The work will be done by Taurus, cryptocurrency bank Sygnum, Bitcoin Suisse, and market maker Woorton. The keyholders in the project will work as custodians.

In recent months, several projects working on decentralized finance (DeFi) are springing up. They are working on Wrapped Bitcoin (WBTC) concept which has become popular on platforms like dYdX, Compounds and bZx.

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Bitcoin Association Switzerland Launches New Token On Tezos Blockchain - Inside Bitcoins

a longer version of this blog post is available on the MIT Media Labs Digital Currency Initiative platform

With Google Trends data showing that searches for the word blockchain have exponentially increased, we may be entering the peak of the hype cycle for blockchain and distributed ledger technology.

But heres the thing: the blockchainisa major breakthrough. Thats because its decentralized approach to verifying changes in important information addresses the centuries-old problem oftrust, a social resource that is all too often in short supply, especially amid the current eras rampant concerns over the security of valuable data. It turns out that fixing that can be a boon for financial inclusion and other basic services delivery, helping to achieve the global objectives laid out in the Sustainable Development Goals (SDGs).

Sorting out hype from reality may depend on how well we identify where institutions that have until now played a role in mediating trust between people are falling short, especially in the key area of money. Deploying the blockchain in those settings to generate secure, decentralized trust could achieve great strides in inclusion and innovation.

What do we mean by decentralized trust? The concept is unfamiliar in part because its converse -- centralized trust is something that we often take for granted, at least while its working. But if we look at the history of transactions since the early barter systems to modern-day digital money exchanges, we can see how differenttrust protocolsfor keeping track of our exchanges of value have evolved and how, in each case, centralizing trust within particular institutions has periodically caused problems.As strategies for dealing with this challenge evolved and as the complexity and frequency of transactions grew, differenttrust bearersemerged. We went from relying on the memory and discretion of tribal leaders, to central governments issuing currencies in the form of precious metals, to commercial banks acting astrusted intermediariesand issuing their own bank notes, to central banks managing a hybrid system in which sovereign fiat banknotes circulate alongside a debt/credit form of money managed by regulated banks and internal ledgers.

We are now at another moment when societys trust in the trust bearers is being challenged again. The cause: the 2008 crisis best viewed as a breakdown in publictrustin the banks role as ledger-keepers and the constant reports of hacking attacks at financial institutions. The difference is that this time the entire notion of centralized trust is being questioned.

This is where the blockchain and distributed public ledgers come in. We now have the prospect of supplanting those risk-ladentrust bearerswith a more robust, decentralized model. This kind of ledger, shared among a network of autonomous computers, which confirm and validate its content by following a unique algorithm that compels them to act in the common interest, and secured with powerful cryptography, is essentially tamper-proof. Its the nearest thing weve ever had to an immutable ledger.

Currency exchanges are the first use case for this technology. But the topics discussed at this past weeksBlockchain Summit on Necker Island reveal a dizzying array of non-currency applications as well. The blockchains disintermediating potential is being tried out for securities settlement, property titles, digital rights, trade finance, supply chains, auditing, voting, solar microgrids, notary and legal services, and the big one, digital identity. Much of this has the potential to leapfrog billions of people into a new era in parallel to the way that mobile phones helped them leapfrog over landlines.

As with all early-stage technology, there are challenges. The underlying infrastructure needs to be scalable and more versatile, but achieving consensus to make such changes is difficult in an open-source work environment. Theres a garbage-in risk that inaccurate information gets permanently inserted into a blockchain. Also, the immutability and irreversibility of transactions might make it harder for individuals and firms to arbitrate solutions whenever theres a dispute. Meanwhile, a vivid debate continues over what kind of blockchain communities should use and when: a public, permissionless blockchain like bitcoin, or a private blockchain in which only permissioned actors maintain the ledger, such as those which various banks are developing. Theres a big public interest in answering these questions.

Amid the rapid pace of open-source fintech innovation, its hard to imagine that distributed ledger technology isnt coming, one way or another. When it arrives, the impact on society could be profound. It is therefore critical that governments engage their citizens and each other in serious discussion about the underlying trust infrastructure of 21st century digital society.

Its too early to know the answers. Thats why its incumbent upon all of us to study and understand how to maximize the benefits of this technology to attain better development outcomes and reach the SDGs. The World Bank and MIT Media Lab could help foster this understanding. With serious research, we can discover the best ways to use this technology to lower costs and increase access to financial services while protecting the social capital thats vital for economic development. Within this, we must keep in mind the unprecedented competition and challenges facing incumbent financial institutions and regulators. If we get this transformation right, and do so in a collective, collaborative manner, it could provide a vital building block for achieving the global communitys SDGs.

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Blockchain technology: Redefining trust for a global ...

Will bitcoin (BTC) move beyond "digital gold"? Is ether (ETH) viable as money? In 24 charts, CoinDesk Research shows what happened to crypto assets in Q1 2020 and examines what may emerge in the future. Download our Q1 analysis here, and join us on April 15 for a webinar discussing our findings and other relevant cryptocurrency research.

The CoinDesk Quarterly Review provides research-based insights on how the narrative has changed for blue-chips such as bitcoin and ether. We look at which assets outperformed on returns, and how the participants in crypto markets are shifting in the wake of Q1s defining event, the March 12 plunge.

Bitcoins digital gold narrative grew up in a bull market in everything. Bitcoin as gold 2.0, a hedge against inflation and a safe haven in an eventual crash, was a meme investors readily understood.

Now, weve seen an economic crisis cause dislocation in crypto markets and push bitcoins price downward in tandem with stocks. Gold and Treasury bonds appeared to have failed to live up to safe haven expectations. If golds narrative is being debated, do we still know what digital gold means? At the very least, the events of the past month have put to rest the notion that bitcoin today can be a haven.

How March 12 shook crypto markets, and how it didn't

The crash shook participants in crypto markets. Open interest in bitcoin futures and perpetual swaps fell off a cliff in March. These markets are used by traders large and small to speculate on bitcoins price, and as a temporary hedge against positions in the spot market. Futures volume spiked and settled at a higher baseline, as it did in spot markets. The increased activity is taking place in a shrunken market. About $1.6 billion of traders positions were liquidated over two days in March. The sharks are eating each other in a smaller pool, as it were.

At the very least, the events of the past month have put to rest the notion that bitcoin today can be a haven.

Bitcoin's long-term holdings, however, remained unmoved. Hodlwaves use Bitcoin timestamps known as UTXOs to measure how long each bitcoin has been held. Tracking time between transactions is a useful measure of long-term buy-and-hold activity. That activity is consistent with bitcoins use case as digital gold, a putative store-of-value. Note that long-term holdings (180 days or more) did not change perceptibly during the March 12 crash. Balances held between 90 days and 180 days shifted abruptly. Were bitcoin sellers concentrated among three- to six-month holders? Or were exchange balances, which shifted on these dates, concentrated in that band?

Alternative user narratives: Return of payments?

Some of bitcoin's long-term holders are surely hoping in time it will prove itself as a haven or store of value. But events such as the March crash open the door to new narratives. The flagship crypto assets next meme will set the adoption curve for verifiably scarce digital assets. Will payments re-emerge as an avenue to adoption?

Since launch, the number of computers running the Lightning Network has increased on average 53 percent every quarter. Lightning is a layer two payments system built on top of the Bitcoin network. The value held within Lightning payment channels has also increased.

New importance for bitcoin and ethereum technical road maps

It's possible a new user adoption narrative will be something quite different from what long-term investors in bitcoin have contemplated to date. Will Bitcoin developers add capabilities like Schnorr signatures, with their privacy and programmability that lead to its adoption as digital financial infrastructure?

The technical road map emerges from Q1 2020 with increased importance for ethereum, as well. Ether evangelists have spread the meme ETH is money" in the belief that it has potential as the base currency of a decentralized, digital banking system, dubbed decentralized finance" or "DeFi." The failure of flagship DeFi systems during the March 12 crash have raised questions about that narrative. Now more than ever it seems to be dependent on a relatively uncertain road map for ETH 2.0, an improvement designed to allow more transaction throughput.

On March 12, total ETH locked in DeFi applications increased as expected, then crashed amid a crisis in DeFis programmatic governance. If ETH is money," wed expect to see the amount locked in DeFi and the ETH price grow in tandem, long-term. For the near term, a recovery to previous levels would indicate a restoration of confidence in DeFi systems.

The CoinDesk Quarterly Review lays out a Q1 analysis of what happened to crypto assets in the quarter. It begins to examine what will emerge now that the digital gold story has been shaken. Download it here, and join us April 15 for a webinar discussing our findings.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Cryptocurrency Review: Bitcoin, Ether and 'Digital Gold' - CoinDesk

Bitcoin (BTC) braved less volatile but choppy trading on April 9 as the United States Federal Reserve flooded markets with trillions in dollars.

Cryptocurrency market daily overview. Source: Coin360

Data from Coin360 and Cointelegraph Markets showed BTC/USD still keeping within a tight $400 corridor between $7,100 and $7,410 as the week continued.

A sudden dip to $7,110 formed the most volatile feature of the past 24 hours. At press time, Bitcoin traded at around $7,325.

Bitcoin 1-day price chart. Source: Coin360

The largest cryptocurrency appeared broadly unfazed by the announcement of a fresh stimulus package from the Fed worth $2.3 trillion.

In a press release, the central bank said that its aim was to support the economy as the U.S. coronavirus death toll reached 14,800.

Board Chair Jerome H. Powell said:

The Fed's role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.

The cash injection comes just weeks after a giant $6 trillion liquidity tsunami from the Fed, a sum so large that it equals the entire U.S. GDP from 1990. Earlier on Thursday, Cointelegraph reported that U.S. national debt was at a historic high of $24 trillion.

While markets were also buoyed by the potential for a cut in oil production after Thursdays OPEC+ meeting, among Bitcoin analysts, the mood was overwhelmingly bearish.

Despite rising around 8% in a week, Bitcoin, like traditional markets, was unlikely to sustain its trajectory, Cointelegraph Markets Michal van de Poppe warned.

The price of $BTC is slowly grinding upwards, but volume is decreasing, he wrote in a Twitter post on Thursday.

The $6,900 shorters got stopped out & flipped long, while the $7,700-8,000 shorters are waiting. More and more people turning bullish, giving me indication that liquidity is beneath us. Lets see.

Popular commentator Looposhi was more damning, writing:

I just think it's cute how some of you about to burn their account over some textbook sh*t. Let me be very clear. THIS IS A #Bitcoin SUCKER RALLY!

Meanwhile, U.S. jobless claims totaled over 6 million for a second week, van de Poppe agreeing with the International Monetary Fund, or IMF, that coronavirus would create the worst recession since the Great Depression of the 1930s.

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Bitcoin Price Ignores $2.3T Fed Cash as Pundit Warns of Sucker Rally - Cointelegraph

After multiple failed attempts, bitcoin (BTC) has finally broken above key resistance, bringing a boost to the short-term bullish case.

The top cryptocurrencyby market value closed (UTC) well above $7,100 on Wednesday, marking an upsidebreak of the 200-period moving average on the three-day chart.

The breakout could now invite stronger chart-driven buying, as a move above the long-term technical line is often considered a confirmation of a bearish-to-bullish trend change.

The 200-period average had repeatedly capped upside in the final days of March. Now that the hurdle has been convincingly crossed, buyers who entered the market earlier this month may also be more comfortable in holding their positions. All in all, the move is a good signal for prices.

The risk-on action seen in traditional markets is also supportive of further gains for bitcoin. Major European indices like Germanys DAX and the U.K.'s FTSE are currently reporting slight gains. Asian stocks also rose early on Thursday following an overnight surge on Wall Street.

The sentiment seems to have been buoyed by reports that the U.S. and European nations are discussing plans to reopen their respective economies at the start of May.Most countries imposed lockdowns of varying degrees of severity in March in order to contain the coronavirus outbreak, negatively impacting commerce.

At press time, bitcoin is changing hands near $7,340, representing a 0.80 percent increase on a 24-hour basis., according to CoinDesk's Bitcoin Price Index. That's well above the 200-period average at $7,093.

The cryptocurrency has recovered by more than $3,400 from the low of $3,867 reached during the early Asian trading hours on March 13 and is now just $700 short of levels near $8,000 seen ahead of the price crash seen March 12.

Three-day chart

Bitcoin repeatedly failed to cross the 200-period average hurdle in the three weeks to April 5, weakening the immediate bullish case and raising the odds of a price pullback.

However, the breakout confirmed by the previous green candle, representing price action for April 6-9, indicates that the rally from lows below $4,000 has resumed.

The MACD histogram, an indicator used to identify trend strength and trend changes, has crossed above zero, signaling a bearish-to-bullish trend change. Further, the Chaikin money flow index is hovering above zero a sign buying pressure is outweighing selling pressure.

All in all, there is a strong case to believe bitcoin will test psychological resistance at $8,000 in the short-term.

Daily chart

Bitcoin is trapped in an ascending price channel, as seen above.

Mondays green marubozu candle, which marked a breakout above $7,000, points to bullish market sentiment. The five- and 10-day averages are trending north, indicating strong upward momentum.

The only cause for concern for the bulls is a decline in trading volumes. A low-volume rally often ends with a notable price drop.

That said, the bias will turn bearish only if prices drop below $6,773 (horizontal line). That would invalidate the marubozu candle created on April 6 and open the doors for a pullback to $5,856 (March 30 low).

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin's Bull Case Strengthens After Breaching Price Hurdle at $7.1K - CoinDesk

Bitcoin price (BTC) is currently in a sort of stasis, unexcitedly trading in the expected range and over the past 48-hours dropping to the former rising wedge trendline at $7,150 and again to the $7,200 support before rebounding to the low $7,400 region.

Crypto market daily price chart. Source: Coin360

For the time being, the price is consolidating within the $7,200 to $7,460 range. The next thing bulls will be looking for is for BTC price to push above the recent high to set a higher-high above $7,663 before launching a move toward $7,992, where the 61.8% Fibonacci retracement currently resides.

BTC USDT daily chart. Source: TradingView

Anyone taking a quick glance at crypto Twitter will notice analysts calling for traders to go short from $8,000-$8,100 as the 100 and 200 day-MA are in this zone and expected to function as stiff resistance levels.

This is possibly due to the fact that since March 13 Bitcoin price has gained approximately 95%. But before any of this can be achieved Bitcoin needs to turn the $7,350 to $7,400 region to support.

For the time being, traders continue to buy on the dips and a glance at exchange order books show traders are quite interested in buying at prices below $7,200.

BTC USDT 4-hour chart. Source: TradingView

The 4-hour timeframe shows that while the price consolidates, the volume is tapering off and this is a hint that Bitcoin is beginning to lose momentum. The moving average convergence divergence histogram has also turned negative and the relative strength index has dropped slightly below 60. The ailing volume and sideways price action also increase the chance of BTC/USD falling below the $7,200 support to $6,900, then $6,750.

Bitcoin price is now facing a few outcomes, with the bias currently tilted towards bears. Simply put, an increase in purchasing volume is needed to break through the current range and rise toward the 61.8% Fibonacci retracement at $7,992.

The alternate scenario involves Bitcoin losing the $7,200 support and as the price drops to retest lower supports investors will have no choice but to see if the interest currently represented in the orderbook manifests into buying at key support levels to prevent a drop to $5,800.

3 day BTC USDT MACD chart. Source: TradingView

Taking a look at the higher time frames gives some encouragement. On the 3-day chart, investors will notice that the MACD line is about to pull above the signal line and the histogram is just now printing a green bar above 0.

Weekly BTC USDT MACD chart. Source: TradingView

On the weekly timeframe, the MACD is slowly beginning to curve up toward the signal line and although the histogram remains negative, the color of the candles has shifted from red to pink. The weekly RSI is also rising above 46 but it is not yet in bullish territory.

More importantly, we can see that the price is drawing closer to an important pivot point and the same can be said for $8,100.

BTC USDT 1-week chart. Source: TradingView

In summary, at the moment theres not much chop to trade for day traders as the risk seems greater than the reward right now. Traders will likely wait for one of the following three scenarios:

Another thing worth remembering is that Bitcoins halving is about 35 days away but with the coronavirus pandemic and current state of global economic affairs it's possible that the halving will be something of a disappointment particularly, when it comes to short-term price action just like the Bitcoin Cash halving was on Wednesday.

Whatever trade you choose, be sure to use a stop-loss.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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3 Options for Traders as Bitcoin Price Is on the Verge of a Breakout - Cointelegraph