After falling to a low of $ 5,800, Bitcoin met a significant buying pressure, and allowed it to rise higher. Currently, the bulls are attempting to reclaim the previous broken zone at $ 6,450.
The strong recovery after a strong sell-off, is a sign of price increase. However, an analyst is currently noting that Bitcoin is still under control by the bears until this major resistance level is crossed.
At the time of writing, Bitcoin is trading at $ 6,450, marking a noticeable increase from the daily low of $ 5,800 created during the recent slump.
Bitcoin price today | Source: Coinmarketcap
The bulls have entered strongly at this level, however, this could be the catalyst for many more downside.
In the short-term, whether or not Bitcoin can move higher can depend on whether or not it can close its monthly candle above $ 6,425, a level that analysts consider most important.
$ btc monthly close above 6425 would be solid bullish SFP to make April-May brighter. For now, it needs to unfold this symmetrical triangle, contracting consolidation. Safest non-scalp swing trades on breakout (or breakdown) retest. Boom or doom? pic.twitter.com/TS118rxrr9
– CRYPTO₿IRB (@crypto_birb) March 30, 2020
“The BTC close to the monthly candle above $ 6,425 will be a bullish signal, and help Bitcoin's price action in April – May become more optimistic. So far, the most important thing is that it breaks out of this symmetrical triangle pattern. Breakout or breakdown? ”
Strong resistance zone
Even if BTC can close the monthly candle above $ 6,425, it still faces some strong resistance in the range of $ 6,450 to $ 6,550.
The famous Trader George spoke of this resistance in a recent tweet, and explained to his followers that Bitcoin is still in the bearish zone, which will be rejected when it can rise above. this area.
As long as we stay below green and close the daily below Sun high we should be good for continued downside imo … pic.twitter.com/DFIemLyQk7
– George (@ George1Trader) March 30, 2020
“As long as the price of BTC remains below the green zone and closes the day below this level, this will be a bearish signal, he noted while referencing the chart above.”
The bulls have to hold $ 5,800 to turn the tables
Over the past month, negative sentiment has dominated the cryptocurrency market, as the uptrend lines and the long-term growth curve have been broken.
However, the Bitcoin price was very quick to regain $ 5,800 – an important level for the Bitcoin bulls.
But why is $ 5,800 important? According to one analyst, the bulls need to defend this level to retain the long-term uptrend for Bitcoin.
Why 5.8k matters $ BTC zoom out.
I bought some spot back. Bulls have to hold as it was the last HL prior to the move up. Below it invalidated the trend that had formed on the LTF’s and would confirm continuation to the downside. This is the last stand imo pic.twitter.com/DM7uKD7XsF
– Pentoshi (@ Pentosh1) March 30, 2020
$ 5,800 is the support that Bitcoin dropped in February 2018, after which it rebounded from this level on multiple occasions. It also acts as a launch pad for Bitcoin to gain momentum and rally sharply in the first half of 2019 and is currently being held again, despite strong selling pressure at the weekend.
Bitcoin price has hit the strong resistance zone of $ 6,450 to $ 6,550, so we expect the price to bounce back from this level. If the bulls continue to step in when the price drops to $ 5,800, then a range action in the next few days is possible.
Also, just over 20 hours before Bitcoin's monthly candle closes, it will be very important to determine the direction the synthetic market will go throughout April.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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