What we saw the first week of April and what are the current visions on the BTC market?
In our last article, “Bears are Stronger and We Haven’t Passed $ 7,000 on BTC” a week ago, we discussed about broken important trendline and some failed attempts to break the $ 7,000 threshold.
A few hours after the article was published, we witnessed a fall to the $ 5857 area of BTC’s main support. This zone confirmed its essence and the next day bounced BTC by more than $ 700 up.
The Bitcoin market currently has a very specific behavior that is characterized by high volatility and recurrent cycles of falls and rises an average of $ 500 + every other day.
Bitcoin continued this behavior and on April 1 again fell to $ 6150 and on the same day the pump followed back to $ 6744. For a moment, it seemed that the bears losing power and the bulls were not giving up.
On April 2, for the first time in almost a month, we managed to overcome strong resistance and the $ 7,000 magical threshold, which the bears had been thoroughly protecting for a month, and we was rejected twice and ended up just before it.
To be honest, it seemed everything hopeful at last, and the golden rule was that it would be necessary to build and turn resistance into new support at this very border. But bears are serious and BTC has been sent back down several times, and to date we are still below this zone.
Let’s take a look at the important facts about technical analysis:
- Strong resistance remains and is in the $ 6900-7000 range
- Bulls must hold $ 6500 if they want to go up and win fight for $ 7K
Trading tips remain as they are on the chart:
- Open SHORT orders in the $ 6900-7000 zone this resistance zone works well and the bulls need very high volumes to pass successfully
- Open LONG orders at $ 6500
Very important note.
There is a CME GAP between 8280 and 9165 $ and it is possible that we will get there shortly.
In short what is CME GAP:
CME is a regulated stock exchange that does not trade during the weekend, if there are significant shifts during this time is created GAP – differences between classical exchanges and CME.
It has been confirmed many times in the past that it was these GAPs that were later completed and that BTC returned to this value.