Bitcoin (BTC) Breaks $7,000 Resistance but Trapped Below $7,353 Resistance

8 April 2020 | Updated: 8 April 2020

Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000

BTC/USD Long-term Trend: Bullish
On April 6, BTC rebounded and broke the resistance line of the descending channel. With the breaking of the resistance line, there is likely to be a change in the trend. In the meantime, the upward move is facing resistance and it is testing a historical price level of November, December, and January. The historical price was in consolidation before the resumption of an uptrend. BTC is likely to go up if the bulls break and close above this level. Bitcoin may fall, if the bulls fail to break this level.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
Bitcoin is above 80 % range of the daily stochastic. BTC is in strong bullish momentum and approaching the overbought region. When a price is in an overbought region, sellers will emerge to push BTC downward. However, in some cases, the overbought condition will linger without the sellers emerging to push BTC downward.

.BTC/USD Medium-term Trend: Bullish
Yesterday, BTC is in a smooth uptrend. The price is making a series of higher highs and higher lows. It shows the support levels where price tested and rebounded. An upward move is possible if price breaks above the current resistance at $7,353.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 21-day SMA and 50-day SMA are sloping upward indicating the upward move. BTC has risen to level 67 of the daily Relative Strength Index. The coin is in the uptrend zone and above the centerline 50.

General Outlook for Bitcoin (BTC)
The bulls have finally broken the $7,000 resistance and also the resistance line of the descending channel. There is a prospect of BTC rising but it is currently facing resistance. As soon as it breaks out of the current resistance, BTC will rally above $8,000.

Instrument: BTC/USD
Order: Buy
Entry price: $7,353
Stop: $7.300
Target: $7,553

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.