BTCUSD continues to suffer losses on Friday after yesterday’s drop by 1.2%. However, the price manages to keep above the key $6,400 mark so far, which prevents it from falling to early-April lows below $6,000. The cryptocurrency still fails to attract buyers and stage a rebound, trading in the negative territory for the second consecutive week.
Despite all the headwinds, bitcoin has a chance to show a healthy recovery this month after a dismal March as April is historically considered as one of the best trading months for the digital currency. Over the last seven years, its price appreciated five times in April. Moreover, the potential buying of Monex Group by a major Japan’s regulated company Coincheck could add some optimism and confidence to the industry.
From the technical point of view, the BTCUSD pair is trading around a critical point. Should the selling pressure intensify in the nearest future, and the price break below the $6,000 threshold, the virtual currency will be vulnerable to more aggressive losses, before buyers emerge. But in our base case scenario, we expect bitcion to meet buying interest around the above-mentioned psychological support, though the recovery process will hardly be fast and easy either.
By Helen Rush
Senior Analyst at Capital Markets