Bitcoin Rebounds From Trend Line Support And Breaks $7,000 – $8,000 Next If We Can Break THIS Level.
- Bitcoin increased by 3% today as the cryptocurrency climbs back above $7,000 to reach $7,100.
- The cryptocurrency managed to rebound at the support provided by a rising trend line.
Bitcoin increased by a total of 3% today which allowed the coin to rise and break back above the $7,000 level. It was trading lower during the start of the week as it dropped back into the support around $6,800. Luckily, it managed to find additional support at a rising trend line which prevented the coin from falling and dropping lower.
Bitcoin now must break above $7,200 and $7,400 if we would like to see the cryptocurrency headed toward the $8,000 level.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can clearly see Bitcoin rolling over from the $7,200 region over the weekend. It fell into the support at $6,800 which is a level that provided strong resistance (now turned support) for the market during March 2020.
This support was further bolstered by the 5-week-old rising support trend line.
These two levels of support allowed Bitcoin to bounce back higher to reach the $7,175 resistance (bearish .618 Fib Retracement).
Short term prediction: Neutral
Bitcoin still remains neutral until it can break above $7,400, however, it is no longer in danger of turning bearish after bouncing from the trend line.
Above $7,175, resistance is located at $7,200 and $7,400. Above this, resistance lies at $7,500, $7,676 (1.618 Fib Extension), and $8,000 (bearish .786 Fib Retracement).
On the other side, the first level of support lies at $7,000. Beneath this, support lies at $6,800, $6,6612 (.236 Fib Retracement), and $6,200.
Key Levels
Support: $6,800, $6,500, $6,100, $6,000, $5,911, $5,786, $5,636, $5,600, $5,500, $5,467 $5,200, $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436.
Resistance: $7,000, $7,174, $7,400, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.
The cryptocurrency managed to rebound at the support provided by a rising trend line.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
Published at Wed, 22 Apr 2020 21:04:09 +0000
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