Bitcoin price stalls as traders warn BTC could dip lower than $55K

This week’s drop is not "convincing," analyst Filbfilb says, echoing others’ misgivings about the likelihood of a short-term bullish continuation.

Bitcoin (BTC) barely recovered its losses on April 9 as fresh doubts emerged about the bull run continuing this month. 

$56,760 “not a convincing bottom”

After sliding 5% on Wednesday, BTC/USD saw only a modest rebound to circle $57,000 at the time of writing, Cointelegraph Markets Pro and TradingView showed. 

Following multiple failed attempts to crack resistance close to all-time highs, analysts were becoming wary of a further dip and a temporary halt to further price gains.

Filbfilb, co-founder of trading suite Decentrader, described this week’s current floor of $56,760 as “not a convincing bottom.”

As reported on Wednesday, funding rates among trading platforms call for a shakeout of leveraged long positions from those overly bullish on a continuation. For Filbfilb, those rates remain “way too high,” he told subscribers of his Telegram trading channel.

Popular Twitter trader Cantering Clark meanwhile pointed to Bitcoin’s 20-week moving average (MA) — a classic “line in the sand” for price performance — still lingering at around $40,000.

“More fuel for why I think April-May puts a lid on $BTC until later in the year,” he commented on a comparative chart.

Macro turns favorable for Bitcoin bulls

Despite institutional interest continuing in recent weeks, fuelled by major new adoption announcements from banks, signs of a slowdown were also beginning to show on the day.

The Purpose Bitcoin ETF saw a slight reduction in its BTC holdings after consistent growth, with its assets under management dipping in tandem from highs of $976 million to $944 million.

Fellow institutional portal Grayscale’s Bitcoin Trust (GBTC) maintained its negative premium, meanwhile, a phenomenon which has put pay to further Bitcoin accumulation since February.

But not everyone was wholly gloomy. For trader trader Crypto Ed, the ultimate market trajectory was clear.

“Not in a rush to get in a position,” he told Twitter followers on Thursday.

Beyond crypto, a buoyant outlook for United States stock markets coupled with a weakening dollar could further serve Bitcoin’s purpose in the short term.

“With excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic…U.S. economy will likely boom,” noted JPMorgan CEO, Jamie Dimon in his annual shareholder newsletter earlier this week.

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