See More

Bitcoin Smashes Through $7,000 — What’s Next?

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Bitcoin continued to climb through the night, now trading above $7,300.
  • There is support and resistance at $6,750 and $7,750 respectively.
  • The BTC price is possibly still trading inside an ascending wedge.
  • promo

On April 6, the BTC price increased considerably, creating a bullish engulfing candlestick to reach a close of $7,355, safely above the resistance of the previous long upper-wick. The next important resistance area is found at $7,750.

Bitcoin’s Daily Movement

The BTC price created a bullish engulfing candlestick on April 7 and moved above the $6,850 level, which will now likely act as support. In addition, the price has moved above the yearly open found at $7,200. Finally, the daily RSI has increased considerably above the 50-line, a bullish sign that suggests the price is in an upward trend.
Bitcoin Daily Movement
Bitcoin Chart by Trading View
However, the price has found some resistance at the 50-day moving average (MA). If it is able to move above this MA, the next significant resistance level is found near $7,750.

Ascending Wedge

In the medium-term, it looks as if the BTC price is trading inside an ascending wedge, and is currently very close to its resistance line. The price may continue trading inside this wedge until it reaches the next resistance level at $7,750 before eventually breaking down. If so, the next important support area is found at $6,200.
Bitcoin Ascending Wedge
Bitcoin Chart By Trading View

Short-Term View

In the short-term, the price is following an ascending support line and has been doing so since March 30. The price has validated this line three times up to this point. In addition, the hourly RSI has been generating a bearish divergence. This suggests that a downward move towards the support line is likely, which would also validate the longer-term ascending support line from the wedge. In the current climate, a breakdown from the support line cannot be confidently predicted. The most plausible movement seems to be consolidation inside this wedge, with the price trading between $7,000-$7,600.
Bitcoin Ascending Support Line
Bitcoin Chart By Trading View
To conclude, the BTC price has broken out above an important resistance level, creating a bullish engulfing candlestick in the process. However, it is still trading inside a bearish pattern and approaching another important resistance level, making a breakout seem unlikely. For those interested in BeInCrypto’s previous Bitcoin analysis, click here.
Top crypto platforms in the US | March 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored