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

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

• 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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Author : Michael Fasogbon

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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.