After a 67% gain, Bitcoin shows signs of strong resistance at $5300. A bearish play may occur
8 Apr, 2019 analyst100
Bitcoin appeared to have been resurrected from a bearish zone after following a bullish sentiment for the past two months with a 67% gain. Now facing another rejection level at $5300, a surge could send BTC to the next level. Otherwise, a bearish play may occur.
BTC/USD Long-term Trend:
Bullish (1D chart)
Resistance levels: $5600, $600, $6400
Support levels: $4750, $4400, $4250
Before the last week spike, Bitcoin market has been following a slow bullish sentiment since early February and respecting the green trend line. But the recent bull-run was more significant as price established a new 2019 all-time high at around $5300 area. A successful breach above the $5300 resistance level could propel price to another new resistance level at $5600 and beyond.
As suggested on the daily RSI, Bitcoin is now trading at the overbought territory. In a short period, we should expect a possible correction. A drop is likely to test close key support at $4750 level. Surpassing the mentioned support level could significantly slump price to $4500 and $4250 supports, near the green trend line.
BTC/USD Medium -term Trend:
Bullish (4H Chart)
After struggling to surpass $4200 resistance level for the past two months, Bitcoin saw a surge in volatility to the high of $5000; breaking the tough rejection level. Today, BTC has retested the $5300 level touching the upper triangle trend before it got rejected. The 4-hours RSI is leveled on the 80 line after leaving the overbought zone.
Maintaining a bullish flag pattern, a possible price break is likely to play out for Bitcoin market. The closest support level for a decline lies at $5000, testing the lower triangle trend. Breaking down the above support could send the coin on a medium-term bearish; visiting $4700 support level and beyond. However, a break-up could set a new bull-run at $5500 and above.
Please note: Niffler.co is not a financial advisor and this article should not be treated as financial advice. However, you are welcome to apply this information on our simulated cryptocurrency exchange.
Bitcoin records 3x higher average trading volume in October than Apple, Amazon, Microsoft
After experiencing increased volatility in late September, Bitcoin (BTC) appears to be regaining its momentum towards another all-time high…2mins 12 Oct, 2021 CryptoSlashy
Goldman Sachs, Wells Fargo among stocks that outperformed Bitcoin in 2021
The rise in Bitcoin's popularity has increasingly positioned the asset as a formidable investment product directly competing with traditional stocks. Despite recording significant returns, some traditional stocks have outperformed Bitcoin in 2021.…2mins 29 Sep, 2021 John_Trevors
Almost 5,000 new cryptocurrencies launched in the last 12 months
As the cryptocurrency industry continues to mature with mainstream adoption, investors are pumping more money into the sector contributing to the sector’s popularity.…2mins 22 Sep, 2021 CryptoParrot
Ethereum adds over 38 million new addresses in 2021, 22% of all ever created
The Ethereum network plays a key role in the cryptocurrency circles, with the asset recording significant interest.…2mins 14 Sep, 2021 CryptoParrot
Recommended crypto exchange
Buy & sell Crypto in minutesLearn more