The cryptocurrency market currently presents a confusing scenario for investors.
Bitcoin (BTC) has once again attracted attention this week, showing notable price changes amid a global economic shift and cryptocurrency-related developments.
As of April 18, Bitcoin price today hovers at $61,080, down by approximately 13.85% over the past week and losing over $180 billion from its market cap.
Bitcoin 7-day price chart. Source: Finbold
Key BTC levels to Watch
The current Bitcoin trading situation represents a critical point, as the cryptocurrency challenges key support and resistance levels. The immediate support level is identified at $58,072, closely followed by a more optimistic resistance level at $64,499.
According to predictions from artificial intelligence (AI) machine algorithm models, BTC is expected to see a bearish trend in the long term, suggesting a projected decrease of minor 1.7%, with a target price of $60,044 by May 1.
BTC Prediction, May 1, 2024. Source: PricePredictions
However, in the short term, machine learning algorithms detect a bullish trend, indicating a potential slight increase in the next few hours.
The algorithms that deploy technical analysis (TA) indicators like relative strength index (RSI), moving average convergence divergence (MACD), Bollinger Bands (BB), average true range (ATR), and others.
Beside AI predictions, crypto expert Ali Martinez thinks that key support levels will determine BTC’s direction. If Bitcoin falls below $62,300, the analyst suggests it could drop to $56,200. Conversely, a rise above $62,300 could signal a potential upswing to $66,500.
Meanwhile, cryptocurrency analyst CryptoCon proposed on April 17 that the ongoing correction is an essential measure aimed at achieving long-term price stability.
The impact of external factors on Bitcoin
A strengthening dollar, encouraged by the Federal Reserve’s decision to hold off on interest rate cuts, is suppressing the bullish outlook for BTC.
Investors are anticipating future high rates, which makes holding onto dollar-denominated assets more appealing. This presents a challenge for Bitcoin as it approaches its April 19 or 20 halving event.
Both the halving and the dollar’s strength are likely to be key factors influencing Bitcoin’s future price movements. Historically, Bitcoin has benefited from a weak dollar, with its price rising as the dollar falls.
However, the upcoming halving event makes it difficult to predict Bitcoin’s future direction.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
