The recently rising price of Bitcoin against the US dollar is slowing progressing towards the next resistance level of $7700. Currently, we are seeing some pin bars forming near $7200 with the resurgence of some selling pressure.

As seen in the BTCUSD Daily chart below, the Bitcoin price has been rising gradually since its lowest levels this year, when the price briefly dropped on the 12th of March to $3600.

Image description: Screenshot of BTCUSD Daily chart in MetaTrader 4 with a custom MT4 trend indicator with 5/50 Moving Average crossover and ADX signals.

The Bitcoin price is still below the 50 MA, but it has closed above the crucial 50% Fibonacci level.

There are few underlying things that many traders believe will push it the price much higher very soon, possibly as soon as this weekend or the next week.

I think there is no doubt it will reach at least $7700 before the bears get a noticeable momentum of resistance. In the longer run, however, Bitcoin seems primed for bigger gains.

Coronavirus

The Coronavirus definitely left its impact on the world’s most famous cryptocurrency. In the time when people lose jobs and drain their savings, holding on to virtual currency becomes less of a priority.

People start liquidating Bitcoin assets to free up the needed cash to survive in these desperate times. Remember the recent Chinese New Year?

On the other hand, this type of social unrest draws richer investors into safe havens. While Gold is still the main asset in the times of world trouble, more and more people are beginning to see the advantages of Bitcoin. Not surprisingly, Bitcoin’s worldwide adoption is on the rise. More institutional money is also beginning to pour into this space and this will only increase with time.

The upcoming Bitcoin halving event in May

The halving, which is mathematically coded into the Bitcoin’s blockchain, reduces the amount of Bitcoin rewarded to miners by half. This basically means that it will be twice as hard to mine each Bitcoin.

Each halving event (Bitcoin already had a few) pushed the price much higher. The halving event will automatically happen next month in May. The Bitcoin price will most likely rise gradually until the halving event.

By Adam Teen - Crypto and FX analyst

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Individuals should always consult with their personal financial advisors.

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