On Apr 10, the price of BTC reached a high of $5466/€4827. A sharp decrease ensued. Bitcoin reached a low of $4912 and €4338 two days later.
BTC/USD has since been on an uptrend with highs near $5300/€4680 reached at the time of writing on Apr 17.
Are prices going to continue along this uptrend or will Bitcoin drop again?
SponsoredLet’s find out:
Bitcoin (BTC): Trends and Highlights For April 17, 2019
- 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 $5320/€4698 and support near $5050/€4460.
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.
Sponsored SponsoredThe 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:
Technical Indicators
To better assess future price fluctuations, we incorporate technical indicators into the analysis. We begin with the relative strength index.
Sponsored
On Apr 15, Bitcoin reached a high of $5218.40 before a drop. On Apr 17, the price reached a high of $5291.30.
Similarly, the RSI made the first high on Apr 15. However, it has proceeded to generate lower or identical values.
This is known as bearish divergence and often precedes price decreases. It should be noted that the divergence is not very significant in value.
However, it is more pronounced in short-term time-frames. Below, the price of BTC/USD is analyzed at thirty-minute intervals from Apr 16 to Apr 17 alongside the RSI
Using these indicators, it is likely that the price will eventually drop to the support line of the channel.
Reversal Areas
We now incorporate support and resistance areas to determine the actual possible future price levels. In this section, we analyze both BTC/USD and BTC/EUR trading pairs.
Sponsored Sponsored
The closest support area is found near $5050/€4460. This area coincides with the support line of the channel. We believe the price is likely to drop to this area.
The closest resistance area is found near $5320/€4698. If the price keeps increasing at the rate predicted by the channel, it is likely that it will reach this area. We do not believe the price will break out above this area.
Conclusion and Summary
Sponsored SponsoredBased on this analysis, the price of BTC is likely to drop to the support line of the channel. This means that prices may near $5000 and drop below €4500. However, we do not predict that significant drops below $5000 are likely in the near future.
Interested in 2019, 2020, and 5 year Bitcoin price predictions? Click on the green button below:
Do you think BTC will keep trading inside the channel? 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.
eToro