Bitcoin Price Prediction: BTC/USD Fear & Greed Index Extremely High, Return To $5,000 At The End Of April?

Bitcoin
  • Bitcoin price struggles to contain gains above $6,900 as $7,000 resistance remains at bay.
  • Bitcoin Fear & Greed Index shows that investors are bearish in spite of the May 2020 Bitcoin halving.

Bitcoin price is trading at $6,898 after failing to sustain gains above $6,900. BTC/USD is also battling resistance at the descending trendline (dotted line). Also adding pressure to the bulls is the 50 SMA currently at $7,042. Looking back, Bitcoin climbed several barriers last week to top highs at $7,500. However, it sharply retreated, breaking tentative support areas at $7,200, $6,800 and $6,600. A low was, however, reached at $6,575 which allowed the buyers to slightly take back control and push a for a reversal.

At the time of writing, BTC/USD is trading at $6,889. Bitcoin bulls seem to be taking a slow approach in attacking the sellers’ congestions zones at $6,900, $7,000 as well as the 50 SMA. The immediate downside is supported by channel support aided by the 100 SMA. If push comes to shove and the buyers lose traction and the trendline support, rapid bearish action is possible and could force the price to retest the $6,000 level.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Bitcoin Halving Not Convincing Investors

Bitcoin Fear & Greed Index by Alternative.me is still stuck in extreme levels (15) in spite of recovery from levels at 11 (recorded in March). The index analyzes emotions and sentiments from thousands of sources and computes into a single figure that is extremely helpful. The current figures are utterly perturbing especially during the few weeks before Bitcoin goes into halving. This means that most people are not convinced that halving would positively impact Bitcoin and are rather bearish.

Bitcoin Fear & Greed Index
Alternative.me Crypto Fear & Greed Index

Looking at the 4-hour chart, Bitcoin has a bearish bias in the near term. The RSI is pointing southwards after recovery was not contained above 50. If BTC/USD fails to advance above 7,000 soon, buyer demoralization could see a selloff targeting $5,000 at the end of April.

Bitcoin Intraday Key Levels

Spot rate: $6,889

Percentage change: 25

Relative change: 0.33%

Trend: Bullish

Volatility: Expanding

 

 



from Coingape https://coingape.com/bitcoin-price-prediction-btc-usd-fear-greed-index-extremely-high-return-5000-end-april/

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