The bears continue to keep control of Bitcoin (BTC) cryptocurrency market, but this is likely to change over the coming week. BTC/USD should rise to $ 58,000 by April 27 as a result of the correction.
Bitcoin started dumping on April 14. By Sunday, the value of the asset collapsed by 20% and reached its lowest value in the last month – $ 51,570 (Bitstamp data). BTC rate rose to $ 57,609 during the correction, but then fell back to $ 53,644. The price of the coin bounced three times from 23.6% Fib recorded during the dump from $ 64,897 to $ 51,570. Therefore, the nearest support barrier is located at $ 54,701. If this barrier is broken, a powerful bearish trend may appear.
The situation on the chart doesn’t look respected because the dynamics of changes in the value of Bitcoin has gone beyond the upward trend that emerged on April 18. Of the positive aspects, only two facts can be distinguished. First, the local bottom reached on April 20 was higher than the dip recorded on Sunday. Secondly, in the course of a downward movement in the market, there is a drop in the volume of trade.
The current situation largely coincides with the February situation. From February 21 to February 23, the BTC rate fell by 23%, and in April – by 20%. Having reached the bottom, the price rebounded by 15% in two days, and from April 18 to 19 – by almost 12%. In February, after the correction, the asset began to drain again, and the final bottom was 4% lower than the previous one. If this dynamics repeats, then by April 23 the cost of Bitcoin will drop to $ 49,400 and then go up.
The main difference between the winter and spring market situations is that in February, BTC was in the oversold zone only after the second drain (up to $ 42,991). While on April 18, the cryptocurrency has already dropped to the maximum oversold value since January 22, 2021. Considering these factors, it can be assumed that the price of BTC will begin to rise after another dump with an estimated target of $ 49,000. If the asset does not start selling, then during the next two sessions the market will reverse. Nevertheless, the first scenario seems to be the most probable, in this regard, at the moment, the purchase of BTC carries increased risks.