Bitcoin Price Might Fall Short of Key Market Resistance, Price Correction On The Cards

The month of April was quite ecstatic for the crypto market as it saw Bitcoin and other major altcoins break past their key resistance level and gain in double digits. The surge in prices also started a prediction fest where most of the analysts have said that the price surge would be followed by a market pullback and another bottom in prices before the bulls finally take charge to take the prices to new highs.

While a bunch of few other analysts has said that the pullback and price correction has already taken place, and the recent rally starting in May is the actual bull run. But, the majority sentiment is that the Bitcoin is poised for a market price correction and the current prices show a more bearish trait than bullish.

First of all Bitcoin’s recent price rally could not take it past the major upper resistance zone which starts at $5,777 and ends at $6,200. Apart from that major key indices like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and the Stochastic RS all suggest that Bitcoin is not ready to enter a full-fledged bull run.

The main reason for such trends is being speculated due to Bitcoin prices being tied to traditional assets like Stock in the short run.

Donald Trump’s Decision to Hike Tariff Shows Negative Impact on the Market

Donald Trump, the US president on Sunday announced that he intends to increase the tariff on Chinese goods from 10% to 25%. The announcement led to “Red” market trends both in the traditional stock market as well as BTC. This might be a mere coincidence, but its a fact that with passing time the gap between the traditional market and the crypto market is thinning.

Mind you, the unexpected April surge was also attributed to traditional Wall Street markets as it sold many future Bitcoin contracts, which even though is not dealt in crypto, still the interest itself was able to drive the prices higher.

Some Analysts Are Bullish

While many analysts are bearish on the current trends, many others believe that Bitcoin is definitely bullish on the short term.  David Puell, the head of research at Adaptive Capita says that the Bitcoin price charts are showing an array of bullish signals both in terms of technical indicators and pure price action.

The investor said that Bitcoin is currently trading in a broadening ascending wedge, a pattern defined by legendary chartist Bulkowski as a catalyst for bullish continuation.

Bitcoin is currently trading at $5,945.24 at the time of writing, up by 4.08% in the 24-hour price charts.