On Apr 2, the price of BTC began a rapid upward move, which took it to a high of $5106 and €4745. Since then, it has been gradually increasing, reaching highs of $5647 and €5018 on Apr 23.
Are prices going to continue along this uptrend trend or will Bitcoin drop again?
Let’s find out:
SponsoredBitcoin (BTC): Trends and Highlights For April 23, 2019
- The price of BTC began a rapid upward move on Apr 2.
- It has been trading inside an ascending channel since Apr 4.
- Bitcoin is trading very close to the resistance line of the channel.
- Bearish divergence is developing in the RSI.
- There is resistance near $5650/€5000 and $6250/€5350.
A Look at the Current Trading Pattern
On Apr 11, the price made an hourly low of $4723.10. A gradual increase 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 3, Bitcoin made a high of $5335.50. Several market cycles have been completed. The price has made successively higher highs in the process.
Tracing these lows 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 and a longer time-frame is required.
APRIL BITCOIN PREDICTIONS!
Technical Indicators
To better assess future price fluctuations, we analyze the price of BTC from Nov 2018 to Apr 2019 algonside the RSI and resistance areas.
On Apr 2, the price made a high of $5106. It continued to increase and on Apr 23 it made a high of $5647.40.
Similarly, the RS made the first high on Apr 2. However, it has proceeded to generate lower values. This is known as bearish divergence and often precedes price decreases.
SponsoredIt is worth mentioning that this divergence is not present in shorter time-frames. Furthermore, the price is trading inside the resistance area near $5650.
Using these indicators, it is unlikely that the price will break out above the resistance area. However, increases at the rate predicted by the channel may be expected in the more immediate future.
Reversal Areas
To better determine price levels in the event of a breakout, we’ve traced a second resistance area for BTC/USD and BTC/EUR below:
This second resistance is near $6250 and €5350. We do not believe this to be likely in the short-term.
Conclusion and Summary
Bitcoin is currently trading within an upward facing channel. It is likely that price will increase within this pattern. A breakout may occur in the less immediate future with prices moving past the first support area.
If a breakout occurs within the next week, we may see highs of over $6000 and €5300 before the end of April.
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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.
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