After a monumental 72 hours, Bitcoin (BTC) has slightly weakened. On Thursday, the asset fell from a $5,300 multi-month high to $4,800, as bulls failed to maintain the buying pressure. As of the time of writing this, BTC sits at $4,900, posting a 7% loss over the past 24 hours. Most altcoins are hurting a tad worse, posting daily losses in the double-digit percentages.
While this sudden reversal, which was likely a result of the overbought market conditions that Ethereum World News reported on previously, could see a continuation, many analysts are still decidedly buoyant
Crypto Michael, in fact, calls this retrace “healthy,” likely touching on the fact that BTC holding above key resistance levels at $4,200 and $4,600 as the weekly close draws closer could be deemed entirely bullish. Michael adds that there is “no need to turn bear” on crypto’s prospects.
— Crypto Michaël (@CryptoMichNL) April 4, 2019
Others wrote that this pullback actually sets BTC up for a further rally, potentially allowing the asset to surmont the $5,300 price point established around 24 hours ago.
Industry personality Jacob Canfield drew out a chart that predicted BTC consolidating at and around $4,700, prior to moving higher to its 350-day moving average and two key Fibonacci levels. If this move comes to fruition, Bitcoin could be trading at the $5,700 range in a few weeks’ time, Canfield’s chart depicts.
From my $BTC long earlier, my stop is at 4750. Seeing big buy walls at $4800 and $4750.
Potential final move for #bitcoin before consolidation or moving sideways.
Final target is the 350MA on the daily along with the 1.618 of the 4th wave and 2.618 of the 2nd. pic.twitter.com/1QC796OQ7u
— Jacob Canfield 🔰 (Official Account) (@JacobCanfield) April 4, 2019
Josh Rager echoed this analysis to a tee. An advisor to both TokenBacon and Blackwave remarked that while BTC isn’t going to see $6,500+ (or fresh lows sub-$3,200 for that matter) anytime soon, he expects for the cryptocurrency to consolidate at $4,670. And if this level, which is Bitcoin’s 200-day moving average, holds, he expects for a bullish continuation, just like Canfield.
$BTC Chart Pullback
To be one of the few people left who thinks $BTC could still new lows, I want to encourage you to control your emotions
IMO, BTC isn't going to see $6500+ or new lows anytime soon
Looking for a continuation north w/ BTC going no lower than $4670 pic.twitter.com/miKtGzO8sr
— Josh Rager 📈 (@Josh_Rager) April 4, 2019
2/ Reminder that BTC generally generates all of its performance within 10D of any year.
–ex the top 10 days, BTC is down 25% annually since 2013 pic.twitter.com/zoEocEEZvu
— Thomas Lee (@fundstrat) April 2, 2019
Bitcoin Network Fundamentals Strong
Fundamentals, too, have been overtly bullish. Binance Research, the data analytics branch of the world-renowned exchange, recently laid out four reasons why Bitcoin is looking rather strong, even stronger than ever.
Firstly, BTC’s move on April 2nd was the asset’s 12th biggest single-day gain in its history. Secondly, on-chain transactions per block is nearing an all-time high. While this is partially a result of Veriblock’s mainnet, this evidently shows that activity on the Bitcoin Network is still around, not gone entirely. Thirdly, on-chain pending transactions in the mempool are nearing late-2017 levels, only accentuating that Bitcoin’s transactional use-case is still pertinent.
And lastly, Bitcoin’s mining difficulty and hashrate have recovered strongly off December 2018’s lows, a sign which some analysts, like PlanB, is a clear-cut sign of a bottom.
Can Bitcoin return to its 2017 glory?
— Binance Research (@BinanceResearch) April 4, 2019