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Is Bitcoin Still In a Bullish Trend?

3 mins
Updated by Gerelyn Terzo
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In Brief

  • Bitcoin broke down from an ascending support line that had been in place for 28 days.
  • A daily close below $6,900 would confirm that the upward trend has ended.
  • If the $6,900 area holds, BTC could begin an upward move toward $7,800.
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Beginning on March 20, the Bitcoin price spent 15 days trading in a range between $5,700-$6,900. After breaking out above this range, the price continued to increase, eventually reaching a high of $7,454. However, on April 10, a sharp drop was recorded in the BTC price that threatens taking the price back inside its previous range.
This range has been outlined by cryptocurrency trader @George1Trader,who presents two potential scenarios for the BTC future movement:
  • The $6,900 area holds and BTC begins an upward move towards $7,800.
  • The $6,900 area fails to hold and BTC decreases towards the midpoint (EQ) of the previous range at $6,300.
At the time of writing, the price was trading at $6,895. In the article below, we will take a look at the BTC price in different time-frames and alongside technical indicators in order to determine which possibility has a higher chance of transpiring.

Trading Range

The BTC price is currently trading right at the resistance line of the previous range at $6,900. The two possibilities for future movement are shown in the image below. At first glance, it seems more likely that the price will decrease. After BTC broke out above the range on April 7, it could not sustain the higher prices and has fallen back to the breakout level. If the price bounces upwards, this would likely be a retest of the breakout level that leads to higher prices. This possibility is outlined by the green lines and could take the price initially towards $7,200 and then to $7,450 afterwards. However, if the price falls back within the range, it would mean that the breakout failed and the price is likely to decrease rapidly toward the EQ at $6,300 and possibly $5,700 afterwards.
Bitcoin Range
Bitcoin Chart By Trading View
The fact that BTC has broken down from an ascending support line that was in place for 28 days supports the bearish possibility. This is indicative that the upward trend that had been going on since March 13 has been broken. In addition, the slope of this ascending support line further dims the upward potential of the bullish scenario. Even if the price were to increase all the way towards $7,450, that would only serve to validate this line as resistance. The price would be expected to initiate a similar downward move afterwards.
Bitcoin Ascending Support Line
Bitcoin Chart By Trading View

Bullish Argument

One possible argument for the bullish scenario to be the correct one comes from the daily chart. The price has reached the breakout level from above, meaning that this could still be a re-test. However, the price would have to create a long lower wick and close above $6,900 in order to keep the bullish hopes alive. Furthermore, the price is facing close resistance from the 50-day moving average (MA) and is below the yearly open.
Bitcoin Daily Time-Frame
Bitcoin Chart By Trading View
It is safe to say that the daily close will be extremely telling for the direction of the future trend. If the price were to create a very long lower wick and close above the yearly open and the 50-day MA, it would have major bullish implications. That, however, seems unlikely. If the price were to close below $6,800, it would likely initiate a very rapid downward move towards $6,300 and below. While the price could initially increase in the short-term, this seems to be the most likely scenario.
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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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