Will Bitcoin Break through the Decisive Resistance Level
Important resistance for bitcoin is located at $ 7175.
The price is trading within the short-term range of $ 6650- $ 7175.
The pair is likely moving along the line of downtrend resistance.
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BREAKOUT ON BITCOIN WITHIN 24 HOURS??? – INVISIBLE RESISTANCE LEVEL FOUND!!
Its breakout could push the price up to $ 8000, and in case of a pullback, the decline could reach $ 6300..
The bitcoin (BTC) rate has grown significantly on April 22. Having opened day trading at $ 6818, the currency reached the $ 7100 area at the time of writing. However, further the bulls will have to face a strong obstacle. As cryptanalyst Pierre (@ pierre_crypt0) noted on Twitter, bitcoin is now approaching an important resistance level, and here bears may activate and the currency is likely to reverse.
Let’s try to figure out if bitcoin is facing an imminent decline.
The bitcoin rate has been trading within the range of $ 7175 – $ 6650 since April 3.
During this time, the price looked twice above the resistance line of this range, and both times this was followed by a sharp decline. This is a bearish signal indicating that it may head south.
Resistance to the bulls can be provided by the Fibo level 0.618 of the correction of the entire bearish move, located at $ 7085. Stronger resistance occurs at $ 7175 – it coincides with the resistance level of this range.
Analysis of longer timeframes allows us to identify another trading range formed by the $ 6900 and $ 5700 levels. At the time of writing, the pair is trading just above this range.
In addition, the chart shows a downtrend resistance line along which the price has been moving since the April 7 high of $ 7454. At the moment, Bitcoin has tested it for strength three times. Currently, this line of downward resistance was at $ 7175. There is also an area of insignificant resistance (at $ 7175).
All this underlines the significance of the $ 7175 level. In its area, the following three levels converge at once:
- Downward resistance line.
- Area of negligible resistance.
- Fibo level 0.786 correction of the bearish move.
If the pair bounces from here, it can be expected to decline within the $ 5700- $ 6900 range. This can cause first a sharp drawdown to the midline of the range, and then to the support of the range..
Thus, the bitcoin rate is approaching an important resistance level of $ 7175, which could provoke a reversal of the short-term uptrend. If such a rebound does occur, the price may decline to $ 6,300, and possibly to $ 5,700. On the other hand, a bullish breakdown of the $ 7,200 level could confirm that the price is in a bull market and intends to head for new highs..
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