Cryptocurrencies

Bitcoin Tries to Cross Over an Important Resistance Zone

It’s no secret to Cryptocurrency Market traders that Bitcoin is witnessing a remarkable recovery. When we look at Bitcoin daily chart, we will find BTC/USD pair rebounded from its lowest levels in 2020 at 3,850.00 on March 13 to trade within a bullish channel till the pair reached an important resistance area between 9,612.50 to 10,000.00.

Bitcoin is currently trading at 9,550.00 by 5:07 GMT, near the psychological and technical resistance zone.


Technical Analysis

  • The horizontal support level is 6,428.00.
  • The horizontal resistance level is 9,612.50.
  • Another horizontal and psychological level is 10,000.00.
  • Bitcoin is trading within a bullish channel range since March 13th and rebounded from its lowest level at 3,850.00 till the pair reached its highest level in May at 10,074.00.
  • Bitcoin is currently trading at 9,550.00 by 5:07 GMT.
  • Looking at the Bitcoin chart we find that it is testing a pivotal and psychological resistance zone, which will determine the pair direction in the coming period, as this region consists of two levels:
  • The horizontal resistance level is 9,612.50.
  • The horizontal and psychological level is 10,000.00.
  • If Bitcoin succeeds in breaking through the current resistance area, this will be a positive indication of the pair, and we expect it to continue its upward trend.
  • But if Bitcoin cannot breach this resistance zone, we expect the pair to go to test the bullish channel support line.
  • If the Bitcoin price movement breaks the upward channel support line, it will be a technically negative indicator, and Bitcoin is expected to drop to test the horizontal support level 6,428.00.
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