Academy Trading Ideas Article

BTC Pushes Over $8,000, But Trend Still Needs Time to Verify: Crypto Market Daily

2020.04.29 Olivia Capozzalo

Wednesday, April 29: Top crypto markets are seeing moderate to bullish growth over the past 24 hours to press time. Bitcoin (BTC) has broken through the $8,000 level, growing about 5 percent on the day.   

1H chart BTC/USD Perpetual Swap data. Source: OKEx.com

BTC finally ushered in a breakthrough this morning after continuing to fluctuate along the $7,800 area. Although the bulls were suppressed when pushing the price for the first time, it maintained a certain strength over the next few hours. The trend has now exceeded $8,000 and is hovering around $8,140 at press time. 

OKEx analysts note that since the price stabilized at $7,600 this week, the whales have entered the counter-absorbing stage. $7,800 has acted as a hard resistance level to the bulls several times. As the breakthrough happens, the main forces seem to be announcing that a bullish market has started. 

However, it should be noted that the resistance strength of $8,200-$8,300 requires a large and continuous inflow of bullish volume in order to have an effective breakthrough, so currently, the trend still needs time to verify.

BTC pullback will look for support at MA(60)

1D chart BTC/USD Perpetual Swap data. Source: OKEx.com

Bitcoin’s 1-day chart is showing that as the price rose towards $8,000, the trend was facing a crucial resistance of $8,000 and the 180-day moving average (MA(180)) at the same time.

Looking back to its history, MA(180) was an important resistance level at two points during the bearish market in 2019, and also once provided support. The volume levels during these resistance periods were also higher than currently. 

MACD also indicates a little bit of a top divergence pattern. Although the range is small and resistance strength is hard, a pullback is possible tonight. Investors should note that the trend can be expected to make a further rebound if the pullback can be supported by MA(60).

Resistance and support levels

  • Short-term resistance: $8,200       
  • Medium-term resistance: $8,300
  • Short-term support: $7,800
  • Medium-term support: $7,600

XRP sees over 10% spike

4H XRP/USD Perpetual Swap data. Source: OKEx.com

After a period of weakness, XRP quickly broke through $0.2 within a few hours yesterday and at one point rose more than 10 percent. 

Now $0.22 is becoming the next hard resistance that the bulls will face. This position used to be the bottom of the intensive trading area from Feb 27 to March 8 of this year. 

As the 4-hour chart shows, the price has closed with several long upper shadows during the past three hours. This is a weakening signal of bulls and there is a rule that after moving away from the short term moving average (MA(30)), the trend will always movw back to correct the previous fluctuation. 

Therefore, investors should first notice the support strength around $0.205  — stabilizing on it can expect a further rebound. Otherwise, the trend may test support around $0.1980-$0.1990.

Resistance and support levels

  • Short-term resistance: $0.2200
  • Medium-term resistance: $0.2300
  • Short-term support: $0.2050   
  • Medium-term support: $0.1990


Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.


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