The Bitcoin price has been increasing since reaching a low of $3,782 on March 13. It reached the $6,850 area twice, on March 19 and 25, but failed to break out both times.
Cryptocurrency trader @devchart outlined a BTC chart, stating his belief that the current long-term bias is bearish. His reasoning comes from the fact that the price has not yet cleared the major weekly resistance level at $6,751. Until it does so, he will remain bearish.
Will the BTC price be able to successfully break out above this level? Continue reading below if you are interested in finding out.
There are three interesting weekly levels to consider, found at:
Together, they created a weekly trading range that the price has been trading in since the rapid decrease in the beginning of March. The weekly closes are used to create the range instead of the wick highs/lows.
Therefore, we agree with the assessment made in the tweet, that the long-term bias for BTC is bearish unless the price is successful in reaching a weekly close above the $6,900 resistance level.
In lower time-frames such as the four-hour, the resistance level remains roughly the same. However, the support level is found at $5,750, one which the price has validated numerous times.
Since March 19, the price has completed a double top near $6,850, which is considered a bearish reversal pattern. In addition, it is combined with significant bearish divergence in the RSI, a sign that the price is likely to decrease to the support level and possibly lower.
In addition, the price is following an ascending support line. A breakdown from the support line, which seems likely, could take the price to the support area of $5,750. If that does not hold, the next support area is found at $5,000.
To conclude, the Bitcoin price was rejected by the $6,850 area and has created a double top. We believe the price will decrease, break down from the ascending support line and possibly reach one of the support areas outlined above.