After a week we have again a look at Bitcoin and its markets, possible development scenarios and what we have seen in the market last week.
In the last article “Will be BTC follow CME GAP or Bears will send him down?” we looked at the possible upward movement in the context of the CME GAP, and to the surprise the bulls woke up and surpassed the $ 7,000 threshold the following day.
Bitcoin stayed above the important $ 7K level for almost four days from April 6 to April 10. The bears decided to test the resilience of the new support zone again, and unfortunately the bulls could not do it. It is difficult to say what circumstances led traders to sell but we have to take into account the ongoing unease caused by the COVID-19 pandemic.
However, the bulls have tried it in three days and we can see almost the same volume of purchases on the chart as on April 10 sell, indicating a balanced interest on both sides. The BTC, however, could not withstand even 24H above 7K $ and fell again.
It is very interesting to observe these regular fluctuations, just such behavior can suit daily traders who are enough to profit just such movements with larger capital and using margin leverage. If you look at the chart you can see recurring price changes of + -500 $ every week.
But let’s not forget the positive news about Bitcoin and cryptocurrencies, when one of the most successful financiers and motivators recommended Bitcoin in the current economic situation. read here
India is also experiencing an enormous increase in interest in cryptocurrencies following the lifting of the ban this month. read here
But let’s look at the technical analysis and possible scenarios for the next week:
- Bulls lost important 7K $ and btc was rejected several times in the field of strong resistance
- The following days and hours the BTC will test the secondary support’s resistance in the $ 6500 or $ 7000 range
- If btc breaks $ 6500, we can drop down to $ 5800 main support
- The BTC needs very big volumes to allow the bulls to pass once more and keep $ 7K
We found a new CME GAP in the area of 7150-7300 $, is possible movement into this zone.
On the chart we can see:
- Strong resistance – 7000-7200 $
- Secondary support – $ 6500
- Main support – $ 5800
- Open LONG in the $ 6600-6450
- Open SHORT under $ 6450