Bitcoin Price Analysis – Bitcoin Regains Momentum Above $6k Following 20% Surge Overnight

Bitcoin Price Analysis – Bitcoin Regains Momentum Above $6k Following 20% Surge Overnight

 

• BTC bears lost control to the bulls as they now charge towards $7000 level
• After recovering from $4000 (Bitfinex), Bitcoin has established new support around $6000

Following a 20% increase under 24-hours, Bitcoin finally broke through a key level of $6000, followed by $6500, which the price just surpassed a few minutes ago. At the moment, Bitcoin is trading around 6550 against the US Dollar. Meanwhile, BTC volume is increasing again. If Bitcoin manages to close well above the $6500 today, we can expect more gains to come in the next few days.

Key resistance levels: $7000, $8000
Key support levels: $6500, $6000

Bitcoin (BTC) Price Analysis: Daily Chart – Bullish

After leaving the $6000 (now support) level yesterday, Bitcoin continued to show strength towards the $7000, which is another important level for the bulls to validate more gains. As we can see from the daily chart, the last two price bars show a huge buying volume in the market.

BTCUSD, Daily Chart – March 20

If we continue to see this positive action for the next few days, Bitcoin is likely to reclaim the $8000 resistance, from where price sold off on March 12. For a pullback, there’s strong support at $6000 in case the $6500 fails to hold as support. Looking at the current price actions, buyers have stepped back into the market.

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

We can see the whole scenario here on the lower time frame. After breaking out from the yellow regression trend line, Bitcoin made a nice increase above the tough level of $6000. This breakout has now brought the bulls back in control. If the price continues to increase, the next key level to watch is $7000.

BTCUSD, 4h Chart – March 20

Above this level lies the $7500. If Bitcoin pushes further, buying pressure would reach the $8000 resistance, which is marked blue on the price chart. If the buyers fail to mount pressure, Bitcoin may pull back a bit to recent break level $6500. A drop below it may bring us back to $6000 support, where the white horizontal line lies. The bulls may find it difficult to regroup back if the support breaks.

BITCOIN BUY ORDER

Buy: $6525
TP: $6800 / $7000
SL: $6412

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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.