Bitcoin Price Analysis: Bitcoin Forms Double-Top Around $7400, Inbound Weekly Reversal?
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Bitcoin Price Analysis: Bitcoin Forms Double-Top Around $7400, Inbound Weekly Reversal?

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Michael Fasogbon

Updated:
• Bitcoin is looking for a rebound level after establishing new resistance around $7450
• Bitcoin may reverse gains if the price drops below $7000, but holds strong support at $6700

After reclaiming $7000 on Monday, Bitcoin has seen a further 5% gain to reach $7450 level. Bitcoin is currently trading around $7300 against the US Dollar following a slight drop to $7082 yesterday. The bulls are still in control. We can expect the price to keep rising as long as volatility expands to the upside.

Key resistance levels: $7450, $7600
Key support levels: $7000, $6700

Bitcoin (BTC) Price Analysis: 4H Chart – Bullish

Bitcoin has made a good run over the past 10 days, bringing us to a weekly high ($7450) all the way from $5880. As shown on the 4-hours chart, Bitcoin is following a higher high and higher low pattern, which is supported by an orange ascending trend line.

BTCUSD, 4H Chart – April 8

 

The price is likely to pull back a bit to $7000 level on the orange trend line before bouncing higher to $7450 resistance. A climb above this resistance should allow buying pressure to $7600 resistance and beyond. However, if Bitcoin rolls back under $7000, the key support level to watch is $6700

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

Bitcoin is looking bullish on the hourly chart but the recent rejection around $7450 (marked yellow) has become noticeable over the last 24-hours trading. The price action just formed a double-top pattern, indicating a potential sell action. Though the pattern would become valid if Bitcoin drops below the current rebound level – around $7000.

BTCUSD, Hourly Chart – April 8

Another thing to pay attention to is the decreasing volume on the price chart, which reveals a possible drop in price. If Bitcoin slumps below the previous low of $7000, the price is likely to bottom at $6800 and $6700 support, where the grey demand area lies. On the upside, Bitcoin would need to break above the previous high of $7450 before we can consider a continuation of the bullish trend.

BITCOIN SELL ORDER

Sell: $7300
TP: $7000
SL: $7500

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