Bitcoin technical analysis April 10







On April 8, Bitcoin reached a high of $ 7,420. The price started falling gradually the next day and broke below the ascending support line formed from March 30 on April 10.


Bitcoin breakdown below the support line


BTC has been following the ascending support line since March 30.


Last night, the price broke below this support line and the support zone of $ 7,050. The next nearest support zone is found at $ 6,750.


The downward move begins when the price makes a three-day high on April 6-8. The third peak is called the bearish reversal pattern and if it appears after the uptrend, it usually reverses the trend.


bitcoin


Bitcoin chart | Source: Trading View


Increasing wedge


In the long run, it is possible that BTC is still trading inside the wedge, as it did since bottoming on March 13. The price is right below the support line, so it is still unclear whether it has been broken or not?


If breakdown, BTC has just completed a five-wave Elliott pattern. In addition, the decreasing volume throughout the wedge also signals a downward trend. However, the 'breakdown' candle does not have very large volume and the price has not yet closed below the support line.


Therefore, it is possible to reverse and trade back in the wedge, then make another attempt at $ 7,800. However, the breakdown is ultimately inevitable.


bitcoin


Bitcoin chart | Source: Trading View


The daily levels


The daily time frame shows similar prospects for a discount. The price has been turned down by the 50-day moving average (MA) and dropped below the yearly open, reached the next major support level, and is in the process of creating a bearish engulfing candle.


A decisive daily close below $ 6,800 can trigger a very quick downward move that pushes BTC below $ 6,000.


bitcoin


Bitcoin chart | Source: Trading View


In short, Bitcoin has broken below the short-term ascending support line and is in the process of breakdown from the long-term ascending wedge. If that's the case, a quick drop to $ 5,800 could soon happen.


You can see the price of BTC here.


Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


Minh Anh


According to Beincrypto








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