Cryptocurrency

Bitcoin on the verge of breaking a bullish trend

Navigation

Bitcoin on the verge of breaking a bullish trend

Bitcoin on the verge of breaking a bullish trend
CONTENT

  • Bitcoin has broken through an important rising support line.

  • A close below $ 6,900 would confirm a violation of the integrity of an uptrend.

  • If the $ 6900 level holds, the next target will be the $ 7800 mark.

International consortium of news organizations developing transparency standards.

For 15 days starting from March 20, Bitcoin has been trading in the range of $ 5700- $ 6900. After exiting this channel, the price continued to rise and eventually peaked at $ 7454. However, on April 10, the cryptocurrency fell sharply, returning to its previous range..

A cryptocurrency trader pays attention to this range @GeorgeoneTrader, which notes two potential scenarios for the future dynamics of BTC:

  • The price will hold above $ 6900 and then gradually rise to the $ 7800 mark.
  • Price will fall below $ 6900 and then head towards the middle of the $ 6,300 range.
  • Bitcoin on the verge of breaking a bullish trend

$ BTC

Just closed 20% of my short. This is the last place where bulls could step in hard imo … Break back above the yearly open and we’re probably going for those highs into 7.6k -7.8’s. Break below the weekly open and it’s game over.

Let’s see. pic.twitter.com/1xgZLW69Lb

– George (@ George1Trader) April 10, 2020

At the time of writing, Bitcoin is trading at around $ 6,860. Next, we will analyze the dynamics of the token on different timeframes with the participation of technical indicators to determine the most likely scenario.

Trading range

Bitcoin is currently testing the resistance line of the previous $ 6900 range. Two possible scenarios for the further direction of movement of the token are shown below.

At first glance, it seems that the probability of a fall in prices is quite high. After Bitcoin exceeded the range on April 7, it was unable to hold on to higher levels and returned to the breakout level. In the event of an upward bounce, the quotes will most likely retest the breakout level and move higher. This potential move is marked with green lines and suggests a rise first to $ 7200 and then to $ 7450..

However, if a token As the use of cryptocurrencies increases, new types of tokens appear. They can represent value or something intangible like voices. Two … More will return to the range, this will mean that the breakout has failed, and Bitcoin is waiting for a decline in the middle of the $ 6300 range, and subsequently, possibly to $ 5700.

The fact that BTC has broken the ascending support line that has been relevant for 28 days supports the bearish scenario. This suggests that the uptrend from March 13 is broken..

Bitcoin on the verge of breaking a bullish trend

In addition, the slope of the upward support line indicates limited upside potential even in a bullish scenario. Even if the price rises to $ 7450, it will not be able to break through the resistance line, after which the quotes will go down.

The bulls argument

The only argument in favor of a favorable scenario can be seen on the daily chart.

The price went down to the breakout level, which means that it is likely to be tested again. However, in order not to lose the chance of growth, bitcoin must form a long wick and close above $ 6,900.

Moreover, on the way up there is strong resistance in the form of the 50-day moving average..

The daily close will serve as an important indicator of the further direction of the trend. If the token forms a very long wick and closes above the 50-day MA, it is likely to continue climbing. However, the chances of this scenario being realized are slim..

If closed below $ 6,800, the coin could accelerate the fall to $ 6,300 and below. In the short term, the price may rise, but in general, the threat of a bearish scenario is much higher.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

Similar articles

Similar articles