Will Bitcoin Finally Sink or Swim above $7,000?

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In Brief
  • Bitcoin faces resistance at $6,900, coinciding with the 100-week MA.

  • The price is following a long-term ascending support line and possibly trading inside an ascending wedge.

  • The price broke out from a short-term symmetrical triangle.

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The Bitcoin price increased considerably during the week of March 30-April 6. The price began the week at $5,880 and increased all the way to $7,198 before reaching a close of $6,772.

The price created a bullish candlestick that closed well inside the resistance from the previous long upper-wicks.

Bitcoin’s Weekly Close

Despite the considerable increase that is clearly visible in high time-frames, the BTC price has yet to reach a close above the main resistance area found at $6,900. This level coincides with the 100-week moving average (MA). Until the price successfully moves above this level and flips it as support, we cannot consider the long-term trend bullish.

In addition, the RSI has yet to reach the 50-line and move above it, which would also be a bullish sign.

Bitcoin Chart By Trading View

Ascending Wedge

In the medium-term, it definitely seems as if the price is trading inside an ascending wedge. The price has been unable to sustain a breakout once moving above $6,900. This is indicative that the resistance line is ascending and invalidates the previous possibility that the price was trading inside an ascending triangle, which is a bullish pattern.

The retracement has reached the 0.618 Fibonacci level, which is a level that could initiate a reversal, especially considering that the price has created a bearish pattern. However, there is no bearish divergence yet to confirm that a breakdown will occur.

Due to the lack of overhead resistance, a breakout above this level could trigger a rapid price increase towards $8,000. In the current climate, however, that seems unlikely.

Bitcoin Chart By Trading View

Short-Term View

In the short-term, the price has broken out from a symmetrical triangle and is in the process of creating a double-top near $7,200. Furthermore, low time-frames have begun to show bearish divergence in the RSI, a sign that the price wants to move downwards.

Therefore, considering that the price is trading at important resistance levels in high time-frames and has begun to show weakness in short-term, a price decrease is expected.

Bitcoin Chart By Trading View

To conclude, the BTC price has reached an important resistance level in high time-frames but has failed to close above it. It has created bearish reversal patterns in both the medium and the short-term, a sign that the price wants to move downwards. A breakdown from the ascending support line could cause a rapid price decrease towards $6,000.

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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