Bitcoin could make an important reversal today
Perhaps Bitcoin repeats the fractal of April 11.
The top of the supposed fractal is around $ 7040, which can be reached on April 22.
Bitcoin Trades Near Long Term Range Resistance $ 5700- $ 6900.
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On April 21, Bitcoin did not begin to develop the decline started the day before. Instead, the price consolidated between $ 6940 and $ 6762, forming a Doji candle on the chart..
It is noteworthy that all price action took place below the median line (EQ) of the $ 7150 – $ 6650 trading range. At the time of writing the analysis, the pair was trading directly in the area of this line, for the third time trying to make its bullish breakdown.
As you can see from the chart, Bitcoin (BTC) is falling behind the 50-hour moving average (MA) resistance, which has just formed a bearish crossover with the 200-hour MA. A similar crossing took place on April 11. Then it formed resistance for the bulls right in the area of the median line of the EQ range.
A bullish breakout of this EQ occurred a day after the aforementioned bearish cross appeared on the chart. If now the market intends to repeat this pattern at the same pace, then we can see a bullish breakout today – on the evening of April 22.
The line of downward resistance along which the price has been moving since reaching the maximum at $ 7293 can help us to indicate the probable top of the breakout.
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This resistance line coincides with the $ 7040 area, which previously played the role of support, and now can act as resistance.
After that, as expected, the price will reverse and begin to decline again in the direction of the support line, and, possibly, below.
The predicted market movement may cause another attempt to increase the BTC rate above the long-term resistance of $ 5700- $ 6900. Further, the price may sink to the median line of the range at $ 6300.
In a more bearish scenario (dashed line), Bitcoin may fall to $ 5,700, with the price testing the range support line for strength. Although this decline looks very sharp, it is still quite typical for the price after a false bullish breakout and return to the previous range..
Thus, the Bitcoin rate may repeat the April 11 fractal. If this pattern repeats again, then by the evening the price may reach a maximum around $ 7040, after which it will make a sharp reversal and fall.
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