BTC to Make a Strong Downtrend Unless It Manages to Break The $7,000 resistance

News / 26.03.2020

Yesterday, the BTC price traded well above the $6,400 support area. Moreover, the price broke above the $6,800 resistance and settled above the 100 hourly simple moving average (SMA). However, it seems the bulls are struggling near the $7,000 resistance area to push the price higher.

A double top pattern, with resistance near $7,000, is likely forming on the BTC price chart. A daily high was formed near $6,989 and the price is currently correcting lower. There was a break below the 23.6% Fib retracement level of the recent rally from the $5,750 low to $6,989 high.

On the downside, a strong support is seen at the $6,500 area. The next major support is seen near the $6,400 level and the 100 hourly SMA. The 50% Fib retracement level of the recent rally from the $5,750 low to $6,989 high is near the $6,400, also serving as a support. A successful break below the $6,400 support and the 100 hourly SMA, could start a major decline. The next support is seen close to the $6,200 level.

Additionally, there is a crucial bullish trend line forming, with support near $6,240, on the BTC/USD hourly chart. A successful break below this trend line support will most likely confirm the highlighted double top pattern. In the above scenario, the price is likely to decline towards the $6,000 and $5,800 support levels.

On the upside, if bitcoin remains well supported above the $6,500 and $6,400 levels, it could rise above the $7,000 resistance area in the near term. A clear break above $7,000 may perhaps negate the double top pattern and the price could rally towards the $7,500 level.

Technical Indicators:

The hourly MACD for BTC/USD is slowly losing momentum in the bullish zone. Hourly RSI (Relative Strength Index) for the pair is currently above the 50 level, with a bearish angle. Major support levels are at $6,500 and $6,400, whereas major resistance levels are also seen at $6,900, $7,000 and $7,200.

Source: Cryptopress.

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.