The disruptive coronavirus pandemic, which has caused plenty of turmoil to global financial markets, was seen by some cryptocurrency traders as an opportunity to profit from investors seeking flight-to-safety strategies, but this has not been the case in recent weeks. Analysts who thought Bitcoin would reach the $10,000 price level in April are now hoping for this token to establish support at $7,500 before the end of the month.

Bitcoin has been trading sideways with moderate volumes. It has not been a bad month for BTC/USD; in fact, the token was dancing around the $7,700 on the Sunday before Wall Street prepared for the final week of April. Resistance could still build around the $8,000 mark, but traders are not holding their breath. If anything, what we are experiencing now is what institutional investors have been waiting for: a more stable and less volatile market. There are very few fundamentals to guide traders; central banks around the world are trying to come up with adequate monetary policies to address the economic devastation caused by the pandemic, but there is too much uncertainty in the air.

With crude oil production in a crisis mode and banks struggling to adjust to the economic downturn, Bitcoin seemed poised to be an investment commodity similar to gold; however, traders still preferred the familiarity and safety of the precious metals. There is some hope among cryptocurrency traders who have seen the United States dollar reach maximum strength, but there will always be issues caused by day traders who are only interested in exiting positions as soon as profits can be collected. As long as this mindset is prevalent in the cryptocurrency markets, traders can expect spikes of volatility and sideways fluctuations.

The technical charts suggest that traders may become more active in the final days of April. If central bank officials take more time to announce emergency monetary policies as some countries try to retake economic activity, Bitcoin traders will likely take short-term positions in hope of a recovery towards $8,000. As for a return to $10,000, it is still possible, but traders may have to wait until May.