Bitcoin comes close to key resistance
Bitcoin is trading within an upward channel.
The price met support above the 50-hour moving average.
BTC is also in a long-term upward channel.
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Bitcoin trades within two upstream channels, one of which is long-term. Now the price is approaching the zone of intersection of resistance levels, located near the psychological level of $ 8000.
A confident breakout of this level will mark the beginning of a new bullish move.
The main cryptocurrency has been trading in an upward channel since April 23. At the time of this writing, quotes are directly above the median line of this channel. Until April 26, the price traded closer to its lower border and even touched support. BTC has hit the resistance level twice since then.
In addition to the median line, the token was supported by the levels above the 50-hour moving average. As long as the price is above both levels, the outlook is considered bullish and BTC will either continue to rally following the channel or break out of it.
Curiously, bitcoin is also within a long-term upward channel since March 20. Within this model, the price reached support on April 20 and has been growing since then.
Now quotes are approaching the zone of intersection of resistance levels, which are the following marks:
- 200-day moving average
- Level 0.786% Fibonacci retracement relative to the previous decline.
- Channel resistance line
- Zone of low resistance
Thus, this area looks attractive for a reversal either in the direction of the channel support line, or even with a subsequent bearish breakout..
On the other hand, a breakout of this level will mark the exit from the channel and confirm that since March 14 the cryptocurrency has not been in a pullback mode, but in the mainstream of a new bullish move..
So, Bitcoin is trading within an upward channel and is approaching an important resistance level of $ 8000, a breakout of which will confirm the start of a new bullish move. However, there is a high probability of a rebound from this mark, followed by a movement in the direction of the channel’s support line.
The previous analysis of bitcoin can be read here.
Do you think Bitcoin will be able to overcome the psychological 8000 mark? What are the chances of continued growth in the short term? Share your opinion in the comments.
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