Bitcoin (BTC) was aiming for $7,000 on April 14 as a sudden $600 dip gave way to a slow grind upwards as the week began.
Cryptocurrency market daily overview. Source: Coin360
Filbfilb: BTC needs “game changer” $7,250 close
Data from Coin360 and CryptoNewspeople Markets showed BTC/USD challenging $7,000 resistance on Tuesday.
Previously, a slump in traditional market futures produced a sharp downturn, with the pair briefly hitting lows of $6,650 across major exchanges.
In the event, the S&P 500 finished down 1% on the day, Bitcoin recovering to press-time levels of $6,900.
Bitcoin 1-day price chart. Source: Coin360
Higher up, the cryptocurrency faced resistance in the form of the 50 and 200-day moving averages, the first of which — currently at $7,050 — kept prices firmly in check over the past two weeks.
As such, for CryptoNewspeople Markets analyst filbfilb, only a close higher would merit a change of risk-off thinking.
“Closing above 7250 would be a game changer. Happy to be sat in cash right now as we are at support and I’m neither bullish or bearish (to be honest),” he told subscribers of his Telegram trading channel late Monday.
Fellow analyst Michaël van de Poppe held similar thoughts.
“If we break and flip $6,900 I’d be assuming we might be seeing $7,600-8,000 in the coming 1-2 weeks,” he tweeted.
“However, rejecting and we’ve got a clear S/R flip and I’ll target $6,350 (monthly level) for longs.”
Deutsche Bank warns of “zombie market”
Suspicions about the health of traditional markets meanwhile gathered steam despite a modest recovery since last month’s mayhem.
Among the detractors this week was Deutsche Bank, which accused the United States Federal Reserve of sparking “the end of the free market.”
In a note quoted by Forbes titled “The end of the free market: impact on currencies and beyond,” the bank’s global head of foreign exchange research, George Saravelos, firmly laid the blame at the government’s door.
“At the extreme, central banks could become permanent command economy agents administering equity and credit prices, aggressively subduing financial shocks,” it read.
“It would be a bi-polar world of financial repression with high real economy volatility but very low financial volatility. A ‘zombie’ market.”
As CryptoNewspeople frequently reports, Bitcoin represents the only money free of government and central bank intervention.