On April 2, the Bitcoin price initiated a very swift upward move, rallying from a low of $6,551 to a high of $7,194. While initially, it seemed that this movement would cause a breakout above the current pattern, the higher prices could not be sustained and BTC reached a close of $6,794, slightly below the main resistance level.
Short-Term Bitcoin Trajectory
In the short-term, the price seems to have successfully flipped the $6,800 level as support. If it is successful in holding on above, it is expected to continue moving upwards.
Triangle Or Wedge
The BTC price is likely trading inside an ascending triangle, having done so since reaching a bottom on March 13. The horizontal resistance line is found at $6,800. Yesterday, while the price increased considerably above it, it failed to reach a close above. Instead, the price created a long upper wick and what resembles a shooting star candlestick, albeit with a bullish close.
If the price were to break down from the triangle, the closest support areas are found at $5,800 and $4,800.
However, the possibility remains that the price is trading inside an ascending wedge instead, which is considered a bearish reversal pattern. This is further solidified by the three upper wicks close to the resistance line.
If this is the case, the price would likely continue trading inside this pattern until it breaks down and heads towards the support levels outlined.
In the long-term, we can see that the price is currently right at a weekly time-frame resistance level.
In addition, it is facing resistance from the 100-week moving average (MA). Therefore, until it flips this level as support, the current price movement cannot be considered bullish.
To conclude, the BTC price initiated an upward move on April 2 but failed to close high enough to be considered a breakout. The failure to do so and the current high time-frame resistance that the price is facing makes bias lean slightly bearish. While short-term increases could occur, the high time-frame resistance yet to be cleared is a major hurdle that the price will need to overtake if it is to continue its upward movement.
For those interested in BeInCrypto’s previous Bitcoin analysis, click here.