Bitcoin (BTC) in a Dilemma, Can Bulls Break the $7,000 Overhead Resistance?

Azeez Mustapha
27 March 2020 | Updated: 27 March 2020

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

BTC/USD Long-term Trend: Bearish
Bitcoin has continued to be stable above the breakout level of $6,400. The price movement is insignificant as the bulls continue to defend the breakout level. The bears also defend the $7,000 overhead resistance. On the upside, if the bulls succeed in breaking the $7,000 resistance, Bitcoin will rally to the high of $8,500. Conversely, if the bears succeed in pushing the price below $6,400, BTC will fall to $5,500 low. In the meantime, the market is approaching the resistance line of the descending channel.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:

Today, Bitcoin is at a 75% range of the daily stochastic. The momentum of the coin is increasing as it approaches the overbought region. The moving averages are pointing downward indicating the bear market.

BTC/USD Medium-term Trend: Ranging
On the 4- hour chart, the BTC is an upward move. The market structure is still the same. The price is making a series of higher highs and higher lows. Also, a bullish trend line has been drawn indicating the support levels of price. Presently, the market is in an uptrend. On the upside, if price breaks and closes below the trend line, the upward move will be terminated.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The moving averages are sloping upward indicating the upward move. There is a bullish crossover as the 21-day SMA crosses over the 50-day SMA. The Relative Strength Index has risen to level 62. BTC is still in the uptrend zone.

General Outlook for Bitcoin (BTC)
The market has been quiet in the last 48 hours. The price is neither moving up nor going down. Bitcoin should have reached the resistance line of the descending channel if the market is moving. The breaking of the resistance line of the channel or the bears’ resistance will determine the direction of the market.

Instrument: BTC/USD
Order: Buy
Entry price: $6,802.30
Stop: $6,732.30
Target: $7,002.30

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

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!
Azeez Mustapha

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.