Bitcoin retains its short-term trading bias, with the BTC / USD pair still trading above its 200-period moving average on the four-hour time frame despite the recent decline.
The four-hour time frame is showing that a strong technical correction is underway, with the April 12th swing-low the key area to watch if the decline continues.
Technical indicators on four-hour time frame have now turned and are continuing to issue strong sell signals.
Traders should note that a pattern could start to form on the four-hour time frame.
Relative Strength Index
The indicator on the mentioned time frame is and continues to point lower.
The indicator on the four-hour time frame has turned , with the signal line and histogram issuing a strong sell signal.
Although Bitcoin has been over the past few weeks, the news that NY prosecutors have accused Bitfinex exchange of covering $850 million loss using Tether funds has generated a sell-off in the market.
BTC / USD Medium-term price analysis
Bitcoin retains its medium-term trading bias, with the BTC / USD pair still holding above its 200-day moving average.
The daily time frame is showing that major support below the $4,900 level is located at the BTC / USD pair’s 200-day moving average, at $4,500. The on the mentioned time frame is critical technical support for the BTC / USD pair, at $3,900.
Technical indicators on the daily time frame have turned and show scope for further downside.
BTC / USD by TradingView
Traders should note that the major breakout on the daily time frame still remains valid while price trades above trendline support, at $3,900.
Relative Strength Index
The has turned and also shows scope for further downside.
The indicator on the daily time frame has turned and shows scope for further downside.
The medium-term prospects for Bitcoin remain highly speculative. However, on a fundamental level its transaction count is approaching late 2017 bull-run levels, which is a clear sign of recovering adoption. If this trend continues, it will likely be only a matter of time before price follows.
Bitcoin has started to correct lower after finding strong technical resistance from the $5,600 level. The BTC / USD pair could trade even lower if short-term sellers can hold price below the $4,900.
The BTC / USD pair’s medium-term outlook remains above the $4,500 level, while moves below the $3,900 level could trigger major technical selling.