Bitcoin Trades Above $ 6,000 Again – For How Long?

  • BTC is forming a bearish hammer on a monthly candlestick chart

  • The price has broken the 200-hour moving average.

  • Support levels pass at $ 6200 and $ 6050.

Bitcoin Trades Above $ 6,000 Again - For How Long?

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On March 30, Bitcoin has risen in price quite well. The cryptocurrency opened at $ 5880 and subsequently formed a bullish engulfing candlestick pattern on the daily charts, marking at the moment at a high of $ 6599 and finishing in the $ 6400 zone.

Candlestick chart

There is only one day left before the monthly candle closes. It will not be an exaggeration to say that in March the bitcoin rate was unstable and showed increased volatility. For example, on March 13, quotes were at 58% of the monthly high, while the current price is 25% below the opening level.

The monthly candlestick resembles a bearish hammer, which is characterized by a long body and a very long bottom wick. Despite the negative pattern, the price bounced back above the important $ 6300 support zone. If Bitcoin completes the month above this level, it is possible that the bullish candle will continue.

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It’s worth noting that the current bottom wick is the longest since February 2018, signaling pressure from buyers.

Despite the positive signs, on the whole, the March candlestick is rather neutral. The next monthly close will help determine the direction of the future trend.

A close above $ 8000 (the opening level in March) could signal a bullish trend and a possible rise in the cryptocurrency towards the $ 10,000 level, while if trading ends below $ 6,000, the likelihood of retesting the $ 3300 base reached in December 2018 will increase..

Short-term forecast

The short-term charts show that the rise from the $ 5857 level was quite rapid, and the price easily broke through strong resistance levels.

The rally initially stalled around $ 6,400. This is a very important mark, where the 0.618% Fibonacci retracement level relative to the previous recession is also located, as well as the 200-hour moving average. Thus, a breakout of this zone and its confirmation as support could give the token a bullish momentum for the longer term..

After violating the integrity of this zone, Bitcoin continued to rise, but met the next resistance and rolled back. Now the 200-hour moving average acts as a support, but at the same time, the cryptocurrency has lost its rising support line.

Thus, BTC is now expected to head towards the $ 6200 and $ 6050 support levels..

So, BTC is forming a bearish hammer on the monthly candlestick chart. In the short term, the price rises from a low of $ 5857, stalling around $ 6600. After the rebound, we expect a fall to the support levels indicated above.

The previous analysis of bitcoin can be read here.


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