Bitcoin Battles a Critical ‘Make-or Break’ Resistance Level

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In Brief
  • The Bitcoin price has possibly created a double-top pattern.

  • There is support at $5,750 and $4,550.

  • BTC needs a successful close over $6,900 to remain bullish.

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On March 13, Bitcoin increased considerably and reached a close of $6,467, measuring a 14% increase from the daily low. The price continued its increase the next day with another higher-high, reaching a close at $6,731. However, the price has yet to move above the March 20 high or the main daily resistance level found at $6,900.

Bitcoin Daily Levels

The Bitcoin price created a bullish engulfing candlestick on March 23, which was the highest closing price since the price plummeted on March 13. This was followed by another bullish candlestick the next day, albeit with a much smaller body.

Bitcoin Chart By Trading View

The price is currently facing strong resistance at $6,900. This resistance comes from both the 0.382 Fib level and the daily resistance level. If the price is successful in breaking out, it could increase rapidly towards $7,550.

Short-Term Movement

In the shorter-term, it looks increasingly likely that the price has completed a double top, which is considered a bearish pattern. In addition, the pattern is combined with bearish divergence, which makes a breakdown more likely.

The price is following an ascending support line, which is currently at $6,200. A breakdown from the support line would most likely take the price to the next support area, found at $5,750.

If the price travels the entire height of the double-top pattern, it could reach the next support area at $4,550, which marked the daily close during the bottom of March 13 and the subsequent bottom of March 18.

Bitcoin Chart By Trading View

To conclude, the BTC price has created two strong daily closes in a row. However, it has failed to break out above the significant resistance area of $6.900. In addition, it has created a double-top, which could lead to a breakdown and a decrease towards the support area of $5,750.

For those interested in BeInCrypto’s previous Bitcoin analysis, click here.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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