Bitcoin price holds $ 6,800 despite predictions of a new low test




Why do traders believe that Bitcoin price will increase sharply in May?


On Friday, April 3, the Bitcoin (BTC) price continues to sustain its bullish momentum that began late on Thursday night.


As Toiyeubitcoin previously reported, Bitcoin briefly consolidated at $ 6,650 before breaking the $ 6,900 resistance level and as some analysts predicted, the price quickly climbed to $ 7,200 before recovering. strong.


Daily cryptocurrency price chart. Source: Coin360
Daily cryptocurrency price chart. Source: Coin360

Analysts are expecting a retest of the lower support at $ 5,800, but for the time being, traders continue to buy and this keeps BTC at $ 6,800. The assumption that the price has recently bounced off the uptrend line, so a retest of the basic support at $ 6,600 and $ 6,330 seems likely.


4-hour chart of BTC / USD. Source: TradingView
4-hour chart of BTC / USDT. Source: TradingView

The VPVR indicator shows a volume gap from $ 6,540- $ 6,370, so if Bitcoin fails to hold the $ 6,600 support level, the likelihood of the old support at $ 6,400 will also be broken. The spike in selling volume can cause prices to fall through the region and possibly through the high volume node at $ 6,330, so analysts expect the price to return to support at $ 5,800.


Since Bitcoin has risen to the top of the $ 7,200 resistance cluster, prices have marked a lower peak on the 4-hour time frame, but the volume of sales - which has quickly pulled the price from $ 7,200 to nearly $ 6,700, saw an increase. The increase in cash flow is shown by the Chaikin Money Flow Indicator (CMF).


The CMF is above the 0 level and the increase, along with the long shadow and the higher low of the last 3 candles on the 4-hour time frame, shows that the bulls are buying above the lows to keep prices above the support of $ 6,600 . The decline in selling volume also supports this view.


4-hour chart of BTC / USDT. Source: TradingView
4-hour chart of BTC / USDT. Source: TradingView

The price is above the MA-20 line of the Bollinger band indicator at $ 6,600, a point well in line with the uptrend line, and at the time of writing, the 4-hour relative strength index (RSI) is 66.


Therefore, traders can watch to see if the downward curve is flattened or starts to pull up with an increase in buying volume on shorter time frames. If this does not happen, the price may retest the basic support mentioned above soon.


What will come next?


In the end, the forced rallies on Thursday and Friday did a great job of boosting Bitcoin's momentum, which allowed the king to break through key resistance levels and turn one of them into support.


Daily chart of BTC / USDT. Source: TradingView
Daily chart of BTC / USDT. Source: TradingView

On the daily time frame, we can see that the price continues to form a higher low and even if the price retests the lower support levels of up to $ 5,800, the price is still likely to retest the resistance of $ 7,200. - where there is a high volume VPVR button.


Once the price crosses the $ 7,200- $ 7,400 zone, with a volume gap, the BTC will rise to $ 7,700. Although this level is close to establishing a higher high above $ 7,950, the 50, 100 and 200-day moving averages are all near the highs and can be a big challenge for BTC.


While it may take longer than expected, a move above the 100 and 200-day moving averages will signal that Bitcoin has returned to the macro level and the trade sustained above the $ 8,500 levels. confirm stronger.


In the short term, traders may just need to keep track of whether the price remains above the uptrend line and whether the decline will continue to grow, as this is a sign of strength.


Readers can update BTC rates and more than 2,000+ cryptocurrencies in real time here.


Disclaimer: This article is an analysis by cryptocurrency analyst Horus Hughes - a frequent contributor to CoinTelegraph. Readers should only consult, not consider this as an investment advice, especially from Toiyeubitcoin, we will not be responsible for your investment.


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According to CoinTelegraph
Translated by ToiYeuBitcoin