The Bitcoin price is approaching a crucial resistance level that is likely to determine its future trend. While a breakout above it could take the price towards $8,000, a breakdown would likely cause a sharp drop towards $6,300.The BTC price increased considerably on April 22. While it began the day at $6,818, it was trading at $7,100 at the time of writing. However, it faces an uphill climb in case it wants to continue moving upwards. Pierre_Crypt0 stated that the price is approaching an important resistance level, which is the final one that is likely to initiate a reversal. If not, the price could continue increasing towards new highs. Let’s take a closer look at the BTC price and determine if it is likely to decrease or if it will continue moving upwards.
Trading RangeThe Bitcoin price is trading in a range between $7,175 and $6,650 and has been doing so since April 3. Throughout this period, the price has deviated twice above the resistance of the range, both of which were followed by a sharp drop. This is a bearish sign that suggests that the price will head lower. As for the levels that are expected to provide resistance, the first one is found at $7,085, which is the 0.618 Fib level of the entire downward move. The stronger resistance level is found at $7,175, since it coincides with the resistance level of the range.
Longer-Term MovementWhen looking at a higher time-frame, we can see another trading range, found between $6,900 and $5,700. At the time of writing, the price was trading slightly above this range. In addition, there is a descending resistance line that the price has been following since reaching a high of $7,454 on April 7. The line has been validated thrice until now. At the time of writing, the descending resistance line was at $7,175. IT also coincides with a minor resistance area, which is also at $7,175. Therefore, we can see the importance of the $7,175 level. All three of the following are converging right at this level:
- The descending resistance line.
- The minor resistance area.
- The 0.786 Fib level of the downward move.
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