Minutes ago as of the time of this article’s writing, Bitcoin breached a daily high, rallying past $7,000 to near $7,050.This meant that from Sunday’s lows, BTC is up 5%, echoing gains seen in the stock market, despite a worsening coronavirus outbreak. With the recent strength in mind, what are analysts expecting to come next? Right now, all analysts have their eyes on notable candle closes, like the six-hour, daily, or weekly. The rally aforementioned is Bitcoin’s fifth attempt at retaking $7,000 on a four-hour candle basis, with all four attempts previously failing, suggesting that $7,000 is a key psychological and technical resistance. It failing to retake this level, which some analysts have since dubbed a “decision point” due to its importance, could indicate impending bearish pressure for the crypto market. As reported by NewsBTC on Sunday, Nik Patel — a markets analyst and the author of the crypto trading bible, “An Altcoin Trader’s Handbook” — suggested that BTC failing to surmount $7,000 on a medium-term time frame will likely lead to a retracement to $5,680, which would be a 20% drop from $7,000. The chart accompanying his sentiment indicates that $7,000 was the weekly high seen last week, making it important from a technical analysis perspective. The call for a retracement has been echoed by another popular crypto trader, who shared the below image on April 4th, predicting the ongoing “sweep” of the local highs around $7,000. What comes next, they explained, will be a 7% retracement back to $6,500, which would kill the bullish momentum that has been forming over the past three weeks once and for all. However, if Bitcoin manages to decisively reclaim $7,000, further upside is likely. A chart from trader Filb Filb indicated that Bitcoin retaking $7,000 would likely support a rally towards $8,000, at which point it is likely to be rejected due to the “resistance cluster” in that region. While there seems to be an opportunity for traders to catch some short-term downside, a consensus is building that the long-term bottom for the Bitcoin price was established in March. Utilizing two indicators, on-chain analyst Willy Woo observed that the way in which Bitcoin’s mining ecosystem is developing gives credence to the sentiment that BTC won’t fall any lower than $3,800, March’s lows:What’s Next For Bitcoin?
At Least The Bottom Is In
Featured Image from Shutterstock
-
Cryptocurrencies
-
Exchanges
-
Block explorers
-
PoW и PoS
-
Events
-
Tools
- Long Reads
- Publish Content
-
-