Bitcoin (BTC) has been quiet for most of April, even if many traditional assets have seen dramatic fluctuations in the aftermath of the COVID-19 epidemic. But now, with volume dropped to a trickle, Bitcoin looks poised to regain some volatility soon.
Starting on the 4-hour chart, there is much to note. First, Bitcoin’s price has been resilient in staying on the plus side of the local inflection line, at about $6,750. Next, it is currently pushing up on the local lid/trendline as if it wants to break. Finally, the EMAs have wound down to a tight braid – often a telegraph of movement to come.
The very low volume also telegraphs a move coming soon, as volume tends to drop off after a consolidation period is coming to a close. At the time of writing, the histogram is expanding bullish giving the whole picture a bullish tint.
Moving to the daily, we see that price has been rejected on the top side all of April at the 55 EMA. It is currently above this level, and closing above it for more than one day would definitely be a bullish hint.
BTC chart by TradingView
The histogram here, while being mostly flat, has fought it out on the positive side of the range; and the MACD moving averages are currently trending up after breaking to the positive side only recently.
Finally, on a 3-day chart, we see that even if some upside comes in, the regional market structure isn’t going to be challenged until near the $8,500 area. So any upside within that mark is not going to count toward a long-term outlook.
The histogram here has succeeded, it looks like, in stabilizing above the centerline and may soon paint a bullish expansion.
Generally, we can be quite confident that larger moves will come soon for the leading crypto; and it’s looking more bullish than not in the short term.
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