Will Bitcoin Finally Be Able to Close Above $6,500?

However, since breaking down from its previous pattern on March 25, the BTC price is not clearly following a trading structure. Well-known trader @CryptoNewton took a stab at outlining one when he tweeted a BTC chart with the caption, “send it home.” Judging by the descending channel he has drawn, this suggests that the price is likely to head lower.

$BTC send it home https://t.co/6TEYUoiEUG pic.twitter.com/vH9hGuEt9U

— 👑 Shelby 👑 (@CryptoNewton) March 31, 2020

Let’s take a closer look at the BTC price movement and determine if it is more likely to move upward or downward.

Descending Channel

At the time of writing, the BTC price was trading very close to a confluence of resistance levels:

• The $6,500 resistance area.
• The 25-day moving average (MA).
• The descending resistance line of the channel.

While the price has moved above all these levels in the form of a long upper wick, the higher prices could not be sustained and the price proceeded to close below. While the descending support line of the channel has not been validated sufficient times, making it difficult to outline its slope, we drew a line parallel to resistance, which is expected to act as a good estimator of its slope. If the price begins to decrease toward the support line, it is likely to find support at the confluence of the line and the $5,800 support area.

Short-Term Movement

In the short-term, it looks as though the price is trading inside a descending triangle. A breakdown from this pattern that travels the entire height of the triangle would take the price all the way down to $6,200, making this an intermediate target if this decrease transpires.

To conclude, the BTC price has reached a confluence of resistance levels near $6,500. The price is expected to decrease towards $6,200 and possibly $5,800.