- Bitcoin stability is given a blind eye by the investors who are still shaken by the crash caused by the Coronavirus pandemic last week.
- Recovery is needed above $6,000 to pave the way for more action leading towards $7,000 but BTC/USD is not technically ready.
Spot rate: $5,394
Relative change: 58
Percentage change: 1.22%
Trend: Short term bearish bias
Bitcoin price is starting to range above $5,000 with an immediate upside limit of $5,500. The newfound stability follows recovery from Monday’s dip under $5,000. However, the bulls lack the energy to sustain gains above $5,500 let alone tackle the critical level at $6,000.
In spite of the stability, investors appear to be shunning the market preferring to watch from the sidelines. The drop last week saw Bitcoin’s safe-haven ‘coat’ split into pieces. Moreover, the fear regarding the spread and impact of COVID-19 continues to keep more investors off both the digital and traditional markets.
Technically, Bitcoin price ranging action is likely to take precedence in the coming sessions. The RSI is currently horizontal at 50 (indicator’s average). To pave the way for significant price movement north, BTC/USD has to overcome the selling pressure at the 50 SMA ($6,000). $7,000 remains to be a psychological but a critical level too; while the 100 SMA is holding ground at $7,398 (resistance zone).