Search ForexCrunch
  • BTC/USD is range-bound above $7,000, the long-term trend remains bullish.
  • Bobbly Lee says that BItcoin may return to the area above $10,000 in May.

BTC/USD hit the intraday high at $7,374 and retreated to $7,270 by press time. The first digital coin has been consolidating gains in a tight range after it had broken above $7,000.  Despite that the upside momentum faded away on approach to $7,500 on Wednesday, BTC/USD is still well-positioned to continue the long-term recovery.

Bobby Lee expects Bitcoin growth to a new all-time high in 2020

The first cryptocurrency is the best investment vehicle among a wide range of digital assets, according to the Board Member of Bitcoin Foundation, Bobby Lee. Speaking in the interview with the crypto media outlet Cointelegraph, Lee said that Bitcoin may hit $10,000 in May and set a new record high by the end of 2020.

The fact that this is the first block halving after Bitcoin became a mainstream investment option for many people further increases Bitcoin’s potential upward price movement compared with 2016.

He also added that a steady flow of institutional investors will also support the price increase ahead of the third Bitcoin’s halving. 

Notably, FXStreet earlier reported that according to Coin Metrics, the number of retail investors in Bitcoin increased significantly since the recent price collapse. 

BTC/USD: Technical picture

On a daily chart, BTC/USD is effectively capped by SMA50 located on the approach to $7,400. Once it is cleared, the recovery may be extended towards the next technical barrier of $7,500 and, eventually, to $8,000. This psychological barrier is reinforced by daily SMA200 and followed by daily SMA100 (currently at $8,150). A sustainable move above the resistance area $8,000-$8,150 will improve the long-term technical picture and open up the way to weekly SMA50 at $8,700 and 38.2% Fibo retracement at $9,300.

BTC/USD daily chart

On the intraday level, BTC/USD is hovering around 1-hour SMA50 (currently at $7,300). A sustainable move below this area will increase the short-term selling pressure and bring $7,100-$7,000 into focus. As this area contains 1-hour SMA100, it may limit the downside correction and serve as a jumping-off ground for the next bullish wave. However, if it is broken, the sell-off will be extended towards $6,600-$6,700 area that stopped the decline on April 2-3.

BTC/USD 1-hour chart