Bitcoin (BTC) is currently trading at around $7,550 following a significant 8% pump since Friday.

Over the past 24 hours, the price of BTC has increased by 1% and is showing signs of recovery.

Will Bitcoin maintain its positive price action and start its recovery towards $10,000 soon?

Let’s take a look at Bitcoin’s chart, courtesy of TradingView.

As you can see, Bitcoin has finally crossed its 20-day EMA (the red line), which is the first crucial step if BTC is to start recording higher lows.

Since the massive bull market that took Bitcoin close to $14,000 last year, BTC has been dropping in value following a downtrend that was only broken in late October when BTC surprisingly broke through a number of key resistance levels (around the 200-day, 50-day, and 20-day EMAs).

Over the last quarter of the year, volume was also showing signs of weakness. During most of Q4, volume stayed below $20 billion.

However, since late December, Bitcoin seems to have been turning things around. After the last drop that took BTC from around $7,500 to $6,900, price bounced and started climbing upwards.

We’re now entering the fourth consecutive day of green price action and volume.

The current Bitcoin trend

Last week, I underlined that within the next few days/weeks, we could see a major reversal after a period of serious accumulation by ‘hodlers’.

It seems I was right and Bitcoin did make a significant reversal.

Volume has remained similar to last week, about 30% to 40% above last month. This means the accumulation cycle could be close to an end and the bull run we’re all waiting for will start sooner than expected.

For the time being though, there’s a chance it can go either way. Only if BTC continues to add higher lows will price continue to go up.

The upwards movement over the past few days could mean a shift in sentiment, but it is too early to tell. It seems we already found the bottom (during 2019) and could be making way for a mid-term move to the upside.

I expect price to bounce between the 20-day and 50-day EMAs until we see a serious break to the upside. At the moment, I expect BTC to trade between $7,500 and $8,000, as there’s strong resistance around this key level.

To break the 50-day and 200-day EMAs, BTC will have to go past some serious volume levels. I personally see massive resistance at around $8,000 and again near $10,000.

Will the trend reverse soon?

As veteran traders and investors usually say, smart money “buys when there’s blood on the streets”. I’ve been saying for the past month that I’m waiting for major drops to make new entries. Moments like these are highly welcomed and appreciated.

I strongly believe Bitcoin to be a long-term store of value, especially as traditional markets continue to show weaknesses.

How can the markets continue to push higher after the ECB’s recent rate cuts, the continuous share buybacks from huge corporations, or the inverted bond yield shoving investors away towards riskier assets?

In addition, repo market activity – as in loans from central banks to commercial and investment banks – has spiked to new monthly records. That adds up to another signal of weakness for the general economy.

We shouldn’t forget that the Bitcoin halving is coming in May 2020, which will put extra positive pressure on price as the number of Bitcoin minted per block is halved.

The key aspect of the halving event is to work out whether it has already been priced-in by miners. I personally doubt it, since most people (and businesses) have a short-term mindset.

In addition, miners’ behaviour shows there’s additional specialisation with better hardware being developed and released. Not only would that make the hash rate go up, it would also diminish profitability for the entire mining space.

Therefore, I see miners pushing for lower prices until the halving takes place. The harder it is to mine until the halving, the more miners will drop off, leaving more room for profits for the players who stay.

In conclusion, investors and traders should pay attention to the overall economic panorama, as it will most likely be a major catalyst for worldwide BTC adoption.

Safe trades!

Current live Bitcoin pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents:

US Dollar – BTCtoUSD

British Pound Sterling – BTCtoGBP

Japanese Yen – BTCtoJPY

Euro – BTCtoEUR

Australian Dollar – BTCtoAUD

Russian Rouble – BTCtoRUB

About Bitcoin

In August 2008, the domain name bitcoin.org was registered. On 31st October 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are.

The paper outlined a method of using a P2P network for electronic transactions without “relying on trust”. On 3rd January 2009, the Bitcoin network came into existence. Nakamoto mined block number “0” (or the “genesis block”), which had a reward of 50 Bitcoins.

More Bitcoin news and information

If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.

As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.

The post Latest Bitcoin price and analysis (BTC to USD) appeared first on Coin Rivet.