Bitcoin consolidates between $15,500 and $15,000 as pharma giant Pfizer announces a coronavirus vaccine.
BTC/USD must hold above $15,000 to avert potential losses to $14,500.
Bitcoin has remained stable amid the announcement of a COVID-19 vaccine, which is 90% effective. The rally from the crash in March has mostly been attributed to instability in global markets like stocks. Last week BTC/USD sprung to new yearly highs close to $16,000. A reversal occurred with the bellwether digital asset refreshing the support at 14,500.
BTC/USD did not, however, stay down for long as a recovery came into the picture, lifting Bitcoin above $15,000. Price action on the upside has been limited under $15,500. Meanwhile, stability has encroached, bring calm in a market that was extremely bullish last week.
The emergence of the COVID-19 vaccine means that the stock market could start to rally. The influx of money into Bitcoin and other cryptocurrencies may go down, negatively impacting the buying pressure.
For now, BTC is dancing at $15,270 amid consolidation. As mentioned, resistance at $15,500 is delaying the anticipated breakout to $16,000. A broader look at the 4-hour chart brings into the picture possibility for a reversal taking precedence in the near term. A divergence formed by the Relative Strength Index adds credibility to the bearish outlook.
BTC/USD 4-hour chart
It worth mentioning that Bitcoin will resume the uptrend if the hurdle at $15,500 is broken. The lift-off to highs above $16,000 might ride on the fear of missing out (FOMO). Many analysts believe that Bitcoin is in a bull market and likely to jumpstart the rally.
On the downside, support is expected at the 50 Simple Moving Average in the 4-hour range. Last week’s support at $14,500 will come in handy, while extended losses will seek refuge at the 100 SMA as bulls fight to prevent losses under $14,000.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com