• Bitcoin's crucial resistance level is found at $7,175.
  • The price is trading inside a short-term range of $6,650-$7,175.
  • The price is possibly following a descending resistance line.

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.

Source: Twitter

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 Range

The 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.

Bitcoin Chart By Trading View

Longer-Term Movement

When 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.

If the price gets rejected, it is likely to fall back inside this $5,700-$6,900 range. If that were to occur, it could trigger a sharp drop towards the range EQ first and the support of the range afterwards.

Bitcoin Chart By Trading View

To conclude, the Bitcoin price is approaching a significant resistance level at $7,175 that is likely to reverse the short-term upward trend. If the price gets rejected, it is likely to fall back towards $6,300, and possibly $5,700. On the other hand, a breakout above $7,200 would likely indicate that the price is still in a bull market and move towards new highs.

Valdrin Tahiri

Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

Follow Author

Want to know more?

Join our Telegram Group and get trading signals, a free trading course and daily communication with crypto fans!

This site uses cookies.
Click here to accept the use of these cookies. View our cookie policy

We are discussing it in our Telegram Channel

Join

We are discussing it in our Telegram Channel

Join