FX.co ★ Trading Signal for Bitcoin (BTC/USD) for April 08-11, 2021: buy above $42,000 (200 EMA - 6/8 Murray)

Bitcoin fell from 48,206 towards the 200 EMA around 42,690. BTC has been extending a technical correction for 10 days with a loss of more than 12%. The crypto is vulnerable to continue falling to the psychological level of 40,000.

The price of Bitcoin (BTC) seems to be under control of some downward pressure in recent days. BTC has a strong correlation with the equity markets, in particular with the Nasdaq-100 because it is considered a risky asset.

Some investors are waiting for better levels in BTC to buy again in the long term, with the aim of reaching the psychological level of $50,000 in a matter of days.

One factor affecting BTC is that investors are being unsettled by comments from FED member Brainard, who said that the Federal Reserve would speed up its timetable and start earlier and faster with reducing bond purchases.

This will trigger short-term risk assets to continue their decline and consequently could affect cryptocurrencies which could start a long-term downtrend.

If in the next few days, Bitcoin falls and breaks the psychological level of 40,000, it is likely to continue its downward movement to the support of 37,500 (4/8 Murray) and to the key level of 31,250 (2/8 Murray).

According to the 4-hour chart, BTC is oscillating inside the downtrend channel and it is likely to continue the downward movement in the next few hours and could reach 42,000.

According to the technical movement, Bitcoin is expected to recover part of the losses if it consolidates above the 200 EMA located at 43,561 or in case of a technical rebound around 42,060.

Our trading plan for the next few hours is to buy BTC above 6/8 Murray located at 43,750 or wait for a technical bounce at 42,060, with targets at 44,788 and 46,875 (7/8 Murray).