On Apr 3, the price of BTC reached a high of $5345. A sharp decrease brought it down to $4778 on Apr 4.
An uptrend has followed. Price broke $5000 again on Apr 5. By Apr 8, highs were near levels reached on Apr 3.
Will Bitcoin move above the highs of Apr 3?
SponsoredLet’s find out:
Bitcoin (BTC): Trends and Highlights For April 10
- BTC/USD has been trading inside an ascending channel since Apr 3.
- Bitcoin is trading very close to the support line of the channel.
- Bearish divergence is developing in the RSI and the MACD.
- There is resistance near $5320 and support near $4800.
Ascending Channel
On Apr 2, the price made an hourly low of $4653.93. A sharp increase ensued soon after. This was followed by a gradual decrease. The price has made several higher lows during this period.
Tracing these lows gives us an ascending support line:
On Apr 4, Bitcoin made an hourly high of $5074.63. It has been increasing since, making several higher highs.
Tracing these highs gives us an ascending resistance line.
The resistance and support lines combine to create an ascending channel:
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It is likely that the price will increase at the rate predicted by the channel until a decisive move occurs. In order to predict the direction of the movement, a look at technical indicators is required.
Technical Indicators
To better assess future price fluctuations, we incorporate technical indicators into the analysis. We begin with the relative strength index and the Moving Average Convergence Divergence (MACD)
On Apr 3, the price made a high of $5345. It reached a similar level on Apr 6.
SponsoredSimilarly, the RSI and the MACD made the first high on Apr 3. However, they have proceeded to generate lower values.
This is known as bearish divergence and often precedes price decreases.
The divergence is occurring in medium-term timeframes, is very significant in value and is occurring in both indicators.
Using these indicators, it is likely that the price will eventually break down from the ascending channel.
While it is possible that the price will see short-term increases, we believe that a breakdown is inevitable.
Reversal Areas
We now incorporate support and resistance areas to determine the actual possible future price levels.
The closest support area is found near $4700. This area is below the channel and could only be reached in the event of a breakdown.
The closest resistance area is found near $5320. It is below the resistance line of the channel. If the price moves above this area, it could reach the resistance line.
Conclusion and Summary
Based on this analysis, the price of BTC is likely to break down from the channel. While it is possible that it will increase in the short term, we believe it will eventually break down in the longer term.
@ArminVanBitcoin seems to think that price could reach $8,500 in the short term:
Short term prediction: News are released that China has banned Bitcoin mining, price dips to $4,500 which is then followed by a massive green candle to $8,500. Hint: I know nothing.🍻 #bitcoin
— A v B (@ArminVanBitcoin) April 10, 2019
While we do not necessarily believe this price will be reached in the short-term, we do think it could be reached before the end of 2020. Check out our long term Bitcoin Price Predictions by clicking on the green button to learn more:
Do you think BTC will keep increasing or breakdown? Let us know your thoughts in the comments below!
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
