It is not a hidden fact that the rise and fall in the price of Bitcoin to greater extent affects all cryptocurrencies this is mainly due to the market dominance of Bitcoin on other cryptos, therefore a good analysis of Bitcoin helps traders in their day to day trading activities.
The word cryptocurrency can’t be mentioned without Bitcoin being in quote, Technically speaking, the Bitcoin chart on Bityard trading platform shows that in the First Quarter of 2021, Bitcoin has gained more than x2.5 (from 21k to an ATH of 64.4k), Also statistics have also shown that crypto traders who went long(bought) Bitcoin on Bityard from the Q1 of 2021 are all in excess gain.
The first few days in month of April 2021 started with a bearish run for Bitcoin, this kept many traders and crypto investors wondering what the month of April and the remaining days of 2nd Quarter of 2021 will be like for Bitcoin.
Amidst all the forces against cryptocurrencies, Bitcoin has remained floating above 48~50k support zones, many crypto- traders wonder whether the price of Bitcoin will deep further.
In this article we will be analyzing and at the same time forecasting the possible prices of Bitcoin in the remaining days of April using 3 major technical analysis indicators.
PAST ANALYSIS OF BITCOIN
Bitcoin had a very bullish trend in the ending days March 2021, from the chart above we can see that bitcoin has been in a range boxed off by 49k - 61k prices.
The Chart also shows that Bitcoin has broken it vertical support (VS), and has fallen down to the 50~49k support zone.
Now the question is, will the 50~48k support zone hold Bitcoin? As of now the 60~61k area now serves as strong resistance zone.
PRESENT ANALYSIS OF BITCOIN
Current Bitcoin market stat;
Bitcoin, still remains the largest of all cryptos in terms of market cap, this stats is been tracked by CoinGecko and Coin Market Cap (CMC)
BTC is worth more than $1 trillion alone following the the price doubling from 21~25k to $50~61k in 2021.
The current market stats of BTC is as follows;
Bitcoin Price $48,636.67 (As of the time of writing this article)
24hrs Trading Volume. $40,609,479,061.58
Volume / Market Cap 0.04398
Market Dominance 50.28%
Market Rank #1
Bitcoin Market Cap
Market Cap $923,343,754,151.11
Fully Diluted Market Cap $1,037,394,511,553.38
Bitcoin Price History
7d Low / 7d High $47,714.66 /$57,520.05
30d Low / 30d High $47,714.66 / $64,863.10
All Time High
Apr 14, 2021 (11 days ago) $64,863.10Bitcoin Supply
Circulating Supply 18,691,268 BTC
Total Supply 18,691,268 BTC
Max Supply 21,000,000 BTC
BITCOIN PRICE FORECAST FOR THE REMAINING DAYS OF APRIL/ MAY.
The chart above represents the previous, present and future prices of Bitcoin. In the 1st half of April 2021 the price of BTC broke a very strong vertical support zone (VS) and has pull down the the down side.
To forecast the future price of Bitcoin we will use e Major indicators;
- Bollinger Bands
-Support and resistance lines
- Stochastic and RSI (2 in 1 )
Bollinger Band indicator;
From the chart we can see that at the beginning of April 2021, Bitcoin price on a day chart shows that Bitcoin has reched the upper band of the Bollinger band, and as a general rule "any time a candle touches any end of the Bollinger band, the price of the security asset (cryptocurrency or forex) will tend to reverse to the other opposite end".
From the chart above we can see that Bitcoin has touched the lower end of the Bollinger band, therefore we are expecting a reverse to the upside in the coming days of April 2021/ 1st half of May 2021.
Support and resistance zones;
Bitcoin previously broke its vertical support (VS) in the 1st half of April 2021, But the horizontal support zone at 48~50k still remains intact, Having touched this support zone at 49~50k zones, we expect to see a bounce back towards the upside at the 60~61k resistance zone.
From a wider view using the support and resistance indicators we can say that bitcoin is in a Range Boxed off by the 48~50k to 60~61k zones.
Stochastic and RSI;
Whereas The stochastic indicates a possible trend flows, "stochastic cross over indicates a possible trend reversal especially when used in combination with the RSI Indicator".
NB; RSI shows the saturation point of a market, RSI of 0.0 shows that the particular market is "Oversold" and also RSI of 100 indicates an Overbought market. And any market in any of these extremes tend to reverts to the opposite side.
There is an initial crossing over of bitcoin's stochastic at RSI of 100 in the 1st half of April i(ndicates that the market was overbought), following the RSI cross over, the price of BTC reversed to the opposite side.
Now we can see from the Bitcoin's chart above that the stochastic have reached the 0.0 RSI (oversold ) and there seems to be indications of possible stochastic crossing over, Therefore we expect the price of Bitcoin to pull upwards toward the 60~61k zones in the remaining days of April 2021.
In conclusion, all the 3 indicators we have used so far shows an "Upward trend for BTC" this is known as "confluence points".
The possible Scenarios of BTC in the remaining days of April 2021.
There are two major scenarios that will play out in the remaining days of April 2021 even up to the 1st half of May 2021, these scenarios are fully indicated on the above chart.
-Scenario A (40-60% chances)
-Scenario B (30-40% chances)
All the above scenarios indicates an initial down trend followed by a progressive uptrend, in all these scenarios BTC never broke the 45k hall mark.
We can also see that the 48~50k support zone of BTC is a strong one.
NB; Bitcoin can be fully traded on Bityard (The world lead cryptocurrency trading platform).
THE BEST PLATFORMS FOR TRADING BITCOIN
There are many trading platforms right now, and it is quite impossible to see a trading platform that doesn’t offer Bitcoin trading pairs, examples of standard trading platforms include;
-Binance
-Coinbase
-Hotbit
-Bitrex
-Gate.io, etc
