Key Highlights:
- Bitcoin has rallied above $7,000 but was rejected once again due to lack of volume
- Bears got no continuation after rejection
- BTC is currently trading above the daily 26-period EMA
| ⠀Bitcoin price: | $6,789 |
|---|---|
| ⠀Key BTC resistance levels: | $6,900, $7,000, $7,048, $7,198 |
| ⠀Key BTC support levels: | $6,726, $6,581, $6,335, $6,000, $5,990 |
*Price at the time of writing
As expected, Bitcoin was able to break above the crucial resistance area at $7,000 but bulls couldn’t keep BTC above the area due to a lack of trading volume. Fortunately for the bulls, the bears got no real continuation after the rejection and BTC has been able to stay above the daily 26-period EMA.
How to buy Bitcoin (BTC) on Binance
Bitcoin Technical Analysis
What has been going on?
The rejection is not as bad because of the lack of continuation downwards. This means that the bulls have another chance of breaking above the area and possibly reaching $8,000.
According to the MVRV Z-score, used to asses if Bitcoin is over/undervalued, Bitcoin dropped below 0 around March 13-18 signaling the market was reaching the bottom. This has been proven historically to be accurate although BTC can stay at the bottom for a while, it always ends up bouncing significantly like last time in December 2018.
Bitcoin price short-term prediction: Bullish
Considering how the bears got no continuation after yet another rejection from the $7,000 area, it seems that Bitcoin is really bullish and waiting for the final breakout above the crucial area.
Tone Vays latest prediction seems to have been quite accurate. Vays stated back on March 31 that he would like BTC to get rejected from around $6,850 and pull back. The digital asset outperformed his prediction but did get rejected eventually, however, the pullback was negligent.
According to Vays chart, a breakout above the triangle formed on the daily chart would most likely take Bitcoin to $8,000 or even higher.
If you are an aggressive bull, a long entry right now with a stop loss below the daily 12-period EMA at $6,581 would be an option. A safer stop-loss level can be found at $6,150 but that also means a lot more risk. If Bitcoin breaks above the $7,000 area and gets close to $8,000 or a bit above, the profit would be around 20%.
A safer approach is to buy the breakout at $7,198 or at $7,000 if you are a bit more aggressive and using the 26-period EMA as your stop loss.
If Bitcoin does break above $7,000, the next likely resistance area will be around $8,000 and the last area of resistance would turn into support.
Where is the resistance towards the upside?
We know the only real resistance at this point is the $7,000 area, once Bitcoin breaks decisively above this area, it is free to run up until the $9,000 level. On the 4-hour chart, the nearest resistance is set at $6,990 and $7,000 psychological level.
The next 2 points of resistance are at $7,048 and $7,198. After that, Bitcoin only finds some resistance at $8,000 and $8,161 but is likely to stop around that area due to buyers’ exhaustion.
What are the technical indicators showing?
Most technical indicators are quite positive now, the MACD on the daily chart has continued to remain bullish and the 12 and 26-period EMAs are really close to a bullish cross while the price has been able to stay above both of them. The RSI is still relatively low even though BTC has seen a lot of upside action.
Previous BTC analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent articles about the price of Bitcoin:
