BTC May Significantly Decline if it Fails to Break the $7000 Resistance

News / 26.03.2020

The BTC price traded over $6400 support area yesterday.  Eventually, the price brook above the $6800 resistance and settled above 100 hourly simple moving average (SMA). However, the bulls are struggling near the $7000 resistance area to push the price higher.

With resistance near $7000, a double top pattern is likely forming on the Bitcoin price chart.

What the BTC Price Chart Reveals

A daily high formed near $6989, and currently, the price is correcting lower. There is a break below the 23,6% Fib level of the recent rally from the $5750 low to $6989 high. On the downside, strong support is available at $6500, with the next significant support near the $6400 level and the 100 hourly SMA.

The 50% Fib retracement level of the recent rally from the $5750 low to $6989 high is near the $6400, serving as a support. A successful break below the $6400 support and the hourly SMA could start a significant decline.

The next support is close to the 6200 level, and there is a crucial bullish trend line forming, with support near $6240 on the BTC/USD hourly-chart. A successful break below this trend line support will most likely confirm the highlighted double top pattern, and the price may drop towards the $6000 and $5800 support levels. 

On the upside, if BTC remains over $6500 and $6400 levels, it may incline above the $7000 resistance area in the short term. A clear break above $7000 may negate the double top pattern, and the price could rally towards the $7500 level.

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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.