BTC Aiming to Break Above The $7,000 Level in The Near Term

News / 22.03.2020

Bitcoin started an upside correction in the previous week after forming a decent support base above $4,000. Moreover, the price gained momentum above the $4,500 level and traded above the $5,000 resistance.

There was a successful break above the $5,500 resistance which resulted in a sharp upward move above the $6,000 level. However, the rally faced a major barrier around the $7,000 level and the 100 simple moving average (4-hours).

A weekly high was formed near $6,979 and the price started a downward correction. The 23.6% Fib retracement level of the recent uptrend from the $4,328 low to $6.979 high was subsequently broken.

On the downside, bitcoin is finding strong supports near the $5,800 level. Additionally, the 50% Fib retracement level of the recent rally from the $4,328 low to $6.979 high is also acting as a support.

On the upside, a major resistance is seen near the $6,800 level and the 100 simple moving average (4-hours). There is also a formation of key bearish trend line, with resistance around $6,680, on the BTC price’s 4-hours chart. A successful break above the trend line, 100 SMA, and $6,800, could lead to high chances of a solid surge towards the $7,500 and $7,800 levels in the near term.

The major support for bitcoin is currently forming near the $5,800 level. The next major support is also seen at the $5,200 level and a connecting bullish trend line on the same chart. A successful break below the $5,200 support could lead to another decline. In such scenario, the price is likely to revisit the $4,500 and $4,200 support levels.

Technical Indicators

The 4 hours MACD for the BTC price is about to move back into the bullish zone. Its 4 hours RSI (Relative Strength Index) is currently well above the 50 level. Major support level is at $5,800, whereas, major resistance level is also seen at $6,800.

Featured image courtesy of AbyssWallpaper. Source: Cryptopress.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.