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On March 13,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.
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.
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.
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.
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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