Bitcoin: $ 7,050 Resistance Will Define Future Trend

Bitcoin: $ 7,050 Resistance Will Define Future Trend

  • BTC is trading near the resistance line of the $ 6900- $ 5700 range.

  • Price follows the descending resistance line at $ 7050.

  • In case of a rebound, Bitcoin will return to the support of $ 6300.

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On April 13, Bitcoin dropped below $ 6750 and touched the $ 6560 level at the moment.

Bitcoin: $ 7,050 Resistance Will Define Future Trend

However, the cryptocurrency did not stay at the lows and immediately began a rally, which sent quotes above $ 6900.

Trading range

On April 10, BTC went down from the descending channel. April 12 tokenAs the use of cryptocurrencies grows new types of tokens. They can represent value or something intangible like voices. Two…

Bitcoin: $ 7,050 Resistance Will Define Future Trend

More confirmed the status of resistance and headed south.

Now the token is in the range of $ 6900- $ 5700, gravitating towards the resistance line of this channel. Further events can develop in two potential scenarios:

  • Fall to the middle of the range ($ 6300), and then, possibly, to support.
  • Rise towards the $ 7,500 level and re-confirmation of the wedge before the start of the bearish trend.

The first option looks more likely just because the price has returned to the range. If, instead, quotes move to a wedge pattern, the price will break through the range resistance again and thereby reduce the importance of this level.

Downward resistance line

The shorter-term charts show yesterday’s failed bearish breakout attempts. Initially, the price dropped below $ 6800, which acted as support.

Now the quotes are located directly below the resistance line of the range, which coincides with the 0.5% Fibonacci retracement level relative to the previous decline.

In addition, the price is following a short-term downtrend resistance line. The prospect of a breakthrough of this line will determine which of the two above scenarios is realized.

The resistance line is at $ 7050, which coincides with the 200-hour moving average and the 0.786% Fibonacci retracement level, which means it is suitable for a reversal.

A break above $ 7050 will show that price is seeking confirmation of the rising wedge. On the other hand, in the event of a rebound, the token can go to the $ 6300 zone.

So, bitcoin held above the $ 6750 level, confirming its status as support. Now quotes are expected to rise to the level of $ 7050, followed by a transition to the channel of the bearish trend.

The previous analysis of bitcoin can be read here.



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