Continued strength has shaky foundations, warns one Cointelegraph analyst, who predicts “bearish divergences” for Bitcoin price beyond $7,500.
Bitcoin (BTC) continued to shoot for $7,500 on April 8 as bullish momentum kept support at $7,000 firmly intact.
Cryptocurrency market daily overview. Source: Coin360
$7K holds firm for BTC
Data from Coin360 and Cointelegraph Markets showed BTC/USD trading in a rigid $300 corridor on Wednesday, keeping volatility between $7,100 and highs of $7,410.
Bitcoin 1-day price chart. Source: Coin360
The stronger performance roughly tracked an uptick in traditional markets, which continued to erase earlier losses as hopes that the coronavirus health was beginning to abate.
At press time, BTC/USD hovered at around $7,260, but going forward, analysts were warning that overall strength appeared to be lacking.
“Losing $6,900 would be bad and initiate $5,800.”
Van de Poppe: Volume “doesn’t add up”
A key focus was Bitcoin miners on the day that hard fork Bitcoin Cash (BCH) saw its block reward halving event take place. As Cointelegraph reported, the next month will see BTC block rewards run at twice those of both BCH and its own off-shoot, Bitcoin SV (BSV), which will see its halving on Thursday.
At the same time, BTC’s mining difficulty increased by 5.4%, with the next adjustment in two weeks likely to add a similar hike.
For those holding BTC since before the coronavirus turbulence hit, the cryptocurrency has protected them from losses. At $7,260, BTC/USD was in fact up 1% year to date.
Continuing, however, van de Poppe remained risk-averse.
“The whole volume on this grind up just doesn’t add up,” he said in additional comments.
“Looks more likely to see $5,000 as a test for support and accumulation period than that we’re going to move further towards $9,000-9,500.”