Bitcoin (BTC) Is Stuck Between $6,000 and $7,000, May Resume Downtrend

5 April 2020 | Updated: 5 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: Bearish
Since April 1, Bitcoin has been fluctuating between $6,000 and $7,000. Today, BTC reached a high of $6,917.90 but the bulls fail to break the resistance level. Consequently, BTC is on a downward move. Its initial fall is likely to be at a low of $6,400. Subsequently, the fall will extend to the low of $5,900, if the $6,400 breakout level fails to hold. However, if the breakout level of $6,400 holds, the market will resume its upward move.

BTC/USD – Daily Chart

Daily Chart Indicators Reading:
The Relative Strength Index has been on an upward move since the last breakdown on March 12. The RSI has risen from level 15 to level 51. This indicates that BTC is in an uptrend zone above the centerline 50.

.BTC/USD Medium-term Trend: Bullish
Yesterday, BTC was making an upward move to retest the $7,000 resistance. A bullish trend line has been drawn showing the support levels of price. The price is presently on a downward move. Bitcoin will fall, if price breaks and closes below the trend line. The downtrend is likely to resume.

BTC/USD – 4 Hour Chart

4-hour Chart Indicators Reading
Bitcoin is currently above 25 % range of the daily stochastic. This implies that the market is in a bullish momentum. Presently, the price bars are above the 21-day SMA and 50-day SMA indicating the upward move.

General Outlook for Bitcoin (BTC)
The direction of Bitcoin is unclear as the market continues to fluctuate between $6,000 and $7,000. The bulls have failed to break the $7,000 overhead resistance on several occasions. Presently, a downward move is expected as the bulls fail to break the $7,000 resistance.

Instrument: BTC/USD
Order: Sell
Entry price: $6,800
Stop: $6,850
Target: $6,600

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.