On Apr 10, the price of BTC reached a high of $5466. A sharp decrease ensued. Bitcoin reached a low of $4912 two days later.
BTC/USD has since been on an uptrend with highs near $5200 reached at the time of writing on Apr 15.
Are prices going to continue along this uptrend or will Bitcoin drop below $5000 again?
Let’s find out:
Bitcoin (BTC): Trends and Highlights For April 15
- The price of BTC reached a high on Apr 10.
- BTC/USD has been trading inside an ascending channel since Apr 11.
- Bitcoin is trading very close to the resistance line of the channel.
- Bearish divergence is developing in the RSI.
- There is resistance near $5190 and $4930.
A Look at the Current Trading Pattern
On Apr 11, the price made an hourly high of $5088.11. A gradual decrease was followed by a gradual increase. The price has made several higher highs during this period.
Tracing these highs gives us an ascending resistance line:
On Apr 12, Bitcoin made a low of $4912. Several market cycles have been completed. The price has made successively higher lows.
Tracing these lows gives us an ascending support line.
The resistance and support lines combine to create an ascending channel:
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.
To read about our full April price predictions, click on the green button below:
To better assess future price fluctuations, we incorporate technical indicators into the analysis. We begin with the relative strength index.
At the time of writing on Apr 15, Bitcoin reached a high of $5185.26 before a slight drop. Soon thereafter, Bitcoin hit a higher high of $5192.01.
Similarly, the RSI made the first high on Apr 15. However, it has proceeded to generate lower values.
This is known as bearish divergence and often precedes price decreases. It should be noted that the divergence is occurring in short-term timeframes and is not very significant in value.
However, it gains validity due to the fact that it is coming after a breakdown from a long-term channel that was preceded by long-term bearish divergence.
Using these indicators, it is likely that the price will eventually drop to the support line of the channel.
We now incorporate support and resistance areas to determine the actual possible future price levels.
The closest support area is found near $4930. This area is below the channel and could only be reached in the event of a breakdown.
The closest resistance area is found near $5190. It coincides with the resistance line of the channel. If the price moves above this area, it would break out from the channel. We believe this to be unlikely.
Conclusion and Summary
Based on this analysis, the price of BTC is likely to drop to the support line of the channel. A breakdown is possible and a breakout is unlikely.
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Do you think BTC will keep increasing or begin to decrease? 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.