Bitcoin has been successful to sustain above $6500 area and currently trying to break above $7000, which is a significant resistance level. BTC has become impulsive as the price bounced from the dynamic level during the Asian session. Can Bitcoin continue to push higher as it remains above $6500? What are the charts and technical indicators are saying? Read more to find further insights into today’s Bitcoin Technical Analysis.
April 6, 2020 | AtoZ Markets – Bitcoin is currently trading around $7100 area and trying to recover higher. Bitcoin rose more the 2% while the price continues to gain against the U.S. Dollar. In this case, if BTC can break above $7000 area in the process, Bitcoin may climb further.
The reason behind Bitcoin’s current strength is not quite apparent at the moment. Besides, the world’s economy is in severe threat because of Coronavirus, which lead the bears to dominate the Bitcoin market. According to the Fibonacci analysis, BTC price recovered almost 50 percent of the last month’s drawdown and it still has the potential to recover further in the coming days.
Bitcoin Continue to Push Higher Above $7000?
Bitcoin is currently trading around $7100 area after breaking above $7000 event level on the intraday chart. BTC was struggling to break above $7000 area since last week and finally certain upward pressure could be seen.
Image: Bitcoin 4 Hour Chart
According to the 4-hour chart, Bitcoin price is currently residing near $7100 area and trying to push higher. After the price found support at the dynamic level, BTC pushed higher quite impulsively and broke above $7000 on the 4-hours chart. As per current price action, if the price continues to recover higher in the process, the bulls may push the price higher towards $8000, which is the next resistance level.
Furthermore, the dynamic level of 20 EMA is residing below the current price, which may now work as strong dynamic support. Besides, the MACD lines are rising upwards while residing above the 0.00 level, which indicates further bullish pressure is in the making.
BTC Bulls to Face Descending Channel Resistance?
According to the Daily chart, Bitcoin has quite collectively recovered higher after bouncing from the descending channel support around $4000 area. As per the current price action, Bitcoin may continue pushing higher and sustain above $7000 area with a daily close.
Image: Bitcoin Daily Chart
In this case, if the price sustains above $7000 area with a daily close, the bulls may continue to push the price higher towards $8500 in the coming days. Alternatively, if the price rejects the descending channel resistance around $7700 area with a daily close, the bears may regain the bearish momentum, which may lead the price lower towards $6500 again.
Moreover, the dynamic level of 20 EMA is residing below the current price after the price broke above it. The dynamic level may now become support, which may help the price to recover higher. Besides, the RSI line is rising upward gradually, which also adds to the Bullish confluence.
To conclude, Bitcoin bears may still dominate as the price remains inside the descending channel. A break above $7700 may lead Bulls to take over or else the Bearish trend may continue.