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On April 1, the BTC price initiated a rapid upward movement. The price increased by 9% in a little more than four hours, reaching a high of $6,744. It has decreased slightly since, creating the short-term range that it is currently trading in.
After failing to move above the newly-created resistance line, the price has decreased towards support. Well-known trader @George1Trader outlined a chart showing a BTC price movement that suggests the price will go higher towards the resistance at $6,800. Prior to doing so, he believes a sweep of the lows near $6,500 is in the cards.
Preferring longs up here… Sweep of the lows is a long towards range high imo. Clean smash back below green and I'd be looking for shorts again. pic.twitter.com/w8HgRIe71L
— George (@George1Trader) April 2, 2020
In the short-term, it is possible to outline a range between $6,685 and $6,545. Yesterday’s rally caused the price to break out above the resistance of the range in the form of a very long upper-wick. However, the price decreased back below the range in quick fashion and created the current support line.
The proposed movement in the tweet would have the price decreasing below this support line, before moving right back inside this range. This is a movement that would make sense since the same thing transpired in relation to the resistance line.
However, the ensuing move to $6,800 is not a foregone conclusion. Depending on how the price reacts to a forthcoming decrease, it could continue moving downwards.
We can see that the price is trading inside a longer-term range between $5,850 and $6,600. In this context, the price has just moved above its range highs.
So, if the expected decrease occurs, it is crucial to see how the price reacts to the support area around $6,480. If the price bounces, the rally towards $6,800 and higher is likely to continue. However, failure of the area to hold would likely cause a rapid decrease towards the range EQ at $6,250 (dashed line).
A decrease below this line seems quite unlikely since the line coincides with the long-term ascending support line in place since March 13. Therefore, it would present a likely level for a bounce if the price manages to get there.
To conclude, the bitcoin price has just moved above an important resistance level. A short-term decrease is expected. The reaction to the $6,480 support area could determine the direction of the future trend.
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