Bitcoin finds support to rebound to 65 000 level

16 April 2024 107
Bitcoin finds support to rebound to 65 000 level

Bitcoin quotes continue to pull back from the historical highs of the previous month. At the same time, the price reached an important support at the level of 61 000, which in March successfully stopped corrective movements of the main cryptocurrency. For the first time since mid-January, technical indicators point to the emergence of oversold conditions, increasing the chances of an upward bounce in bitcoin quotes. The nearest target of the bulls may be the mark of 65 000.

The cryptocurrency market is in anticipation of the 4th ever bitcoin halving, scheduled for April 20. Slowdown of the mining procedure limits the arrival of new bitcoins on the market, which stimulates price growth. Bitfinex analysts believe it is possible for bitcoin to rise in price to $150 000 within 12–14 months after the halving. Not all experts agree with this assessment, especially as the main cryptocurrency has already risen in price by almost 50% since the beginning of 2024. Nevertheless, the historical pattern remains on the side of bitcoin buyers.

Positive news for cryptocurrency market participants came from Asia. The Securities and Futures Commission of Hong Kong (SFC) approved the start of trading in ETFs for bitcoin and ether. 3 management companies from China have already announced the launch of cryptocurrency exchange traded funds in the near future. Against the backdrop of real estate market problems, investors from China are actively looking for profitable assets, and after gold, cryptocurrency is sure to attract their attention.

Ravi Doshi of FalconX notes favorable prospects for bitcoin. This year, regulators in the United States and Hong Kong approved the listing of ETFs for the main cryptocurrency, and other countries are sure to follow. Also, on the horizon is the start of a cycle of interest rate cuts. If the Fed hesitates to ease monetary policy, other central banks will take the lead.

The Stochastic indicator on the daily bitcoin chart indicates an oversold condition and a high probability of a price rise. In the absence of a breakdown of the 61 000 support, the level of 65 000 is quite achievable on the horizon of the next few days.

The following trading strategy may be offered:

Buy BTCUSD at the current price. Take profit – 65 000. Stop-loss – 61 000.

Traders may also use a Trailing stop instead of a fixed Stop-loss at their discretion.

This content is for informational purposes only and is not intended to be investing advice.

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