Bitcoin Price Analysis: Bitcoin Struggles Under Crucial Resistance After Reclaiming $7000, Break or Rejection?

Bitcoin Price Analysis: Bitcoin Struggles Under Crucial Resistance After Reclaiming $7000, Break or Rejection?

• Bitcoin is facing tough resistance around $7200 – $7300 price area
• The price continues to hold above $7000 support as bullish continuation remains shaky

Last week, Bitcoin corrected to $6500 but managed to bounce back above $7000 level. Starting the week above this level could be an interesting bullish sign for Bitcoin.

But it might become worrisome if the price continues to struggle under $7450 resistance. Bitcoin is currently changing hands at around $7170. The recent correction might continue if the price slips beneath $7000.

Key resistance levels: $7300, $7450
Key support levels: $7000, $6800

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

The April 16 bounce from $6500 has reactivated bullish sentiment for Bitcoin and at the same time captures the momentum in an ascending channel pattern. As can be seen on the price chart, Bitcoin is eyeing a crucial resistance of $7450 (marked grey) but buyers are facing tough resistance around $7200-$7300 for the past three days now.

BTCUSD, 4H Chart – April 20

Bitcoin is currently undergoing a slight consolidation. We can expect a nice rally to the upper boundary of the channel of buyers can push above this grey horizontal area. But if Bitcoin fails to regain momentum, a drop below $7000 could trigger a sell to $6800, which is around the channel’s support. The drops would become terrible if a channel breakdown occurs.

Bitcoin (BTC) Price Analysis: Hourly Chart – Bullish

After breaking above a 10-day descending channel, Bitcoin reclaimed $7000 and continued to hold above it. Though the three days bullish action is now supported by a white rising trend line, as shown on the hourly chart. The price touched $7300 over the weekend but now dropping towards this rising line.

BTCUSD, Hourly Chart – April 20

If Bitcoin plunges below this trend line, ugly selling pressure may reach $7000 support. It may even drop to $6900 and $6800 support if the supply keeps increasing, resulting in bearish again. On the upside, Bitcoin would need to surpass $7200 – $7300 price area before advancing higher to $7450 – the monthly high.

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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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.