2020-4-14 12:03 |
On April 13, the Bitcoin price decreased below the $6,750 support area and briefly touched $6,560. However, the lower price levels could not be sustained and BTC immediately began a rally that took it above $6,900.
Bitcoin Trading RangeOn April 10, the BTC price broke down from a descending wedge. On April 12, it validated it as resistance and decreased.
It is now trading in a range between $6,900 and $5,700, currently being very close to the resistance line of this range. From here, there are two pathways that the price could take:
Decrease towards the EQ ($6,300) of the range and possibly towards the support line. Increase towards $7,500 to validate the wedge once more before beginning a downward move.The first option seems more likely just by the fact that the price has fallen back inside the range. If it were to increase towards the wedge instead, it would break the resistance of the range once more without reacting to it, diminishing its importance.
Bitcoin Chart By Trading View Descending Resistance LineLower time-frames reveal yesterday’s failed breakdown attempt. While the price initially decreased below $6,800, the lower levels could not be sustained and the price claimed this support area shortly after.
Currently, the price is trading directly under the resistance line of the range, also coinciding with the 0.5 Fibonacci level of the entire previous decrease.
Bitcoin Chart By Trading ViewIn addition, the price is following a short-term descending resistance line. Whether or not the price breaks out above this line will help determine if the first or second scenario outlined in the section above transpires.
The resistance line is currently at $7,050, coinciding with both the 200-hour moving average (MA) and the 0.786 Fib level. This confluence of resistance levels makes it a very likely reversal area.
A breakout above the $7,050 level would indicate that the price is likely on its way to validate the ascending wedge once more. On the other hand, a rejection would likely take the price towards $6,300.
To conclude, the Bitcoin price failed to break down below $6,750 and reclaimed this area as support afterward. It is expected to increase until around $7,050 before beginning a downward move.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
The post Bitcoin’s $7,050 Resistance Could Determine Its Future Trend appeared first on BeInCrypto.
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