The Near Term Aim Of The BTC is to Break Above The $7,000 Level

News / 22.03.2020

The BTC prices have experienced an upside correction during the past week after forming a decent support base over $4,000. The correction earmarked a price gain momentum above the $4,500 mark trading at above the $5,000 level of resistance.

The coin experienced a break above the initial $5,500 resistance, causing a surge above the $6,000 mark. The price surge however hit a snug at the $7,000 resistance level and the 4 hours 100 simple moving average.

A new weekly high near $6,979 was formed before a downward price correction began. The coin’s 23.6% Fib retracement level of the recent upswing from the $4,328 low to $6.979 high was in turn broken.

The downside however has bitcoin’s strong support near the $5,800 mark. It’s 50% Fib retracement level of the recent rally from the $4,328 low to $6.979 high also acts as another support base.

For the upside, major resistance at the $6,800 level and the 100 simple moving average (4-hours) can be observed. A key bearish trend line is being formed with resistance at the $6,680 mark on the price’s 4-hours chart. If the BTC successfully breaks above the trend line, 100 SMA and $6,800, the likelihood of a surge towards the $7,500 and $7,800 levels in the near term are very high.

The $5,800 price level forms the major current BTC support level, with the next major support at $5,200. A connecting bullish trend line can thus be observed on the same chart. If the BTC price drops below the $5,200 support, another price decline may be on the way. The price may get to the $4,500 and $4,200 support levels as a result of such a decline.

Technical Indicators

The BTC’s 4 hours MACD is anticipated to move back into the bullish zone. The coin’s current 4 hours RSI (Relative Strength Index) is above the 50 levels by quite a margin. This sets the major support level at $5,800, with the major resistance level set at $6,800.

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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.