Bitcoin Recovers from $6,700 Low, Retests $7,000 Resistance
Apr 22, 2020 at 10:26 //
News
Bitcoin made a sharp drop after failing to jump over the hurdles at $7,200 and $7,400. BTC is recovering after the recent drop to $6,774 low.
There were indications that a further decline to the next support of $6,400 is likely. Luckily, the bulls survived the bearish run. What happened in the last two days was that the $6,700 support was holding while the crypto was consolidating between $6,700 and $6,900.
This is to confirm the earlier notion that the biggest crypto has only been trading between $6,600 and $7,400 since April 6. After consolidation, we should expect two happenings. Firstly, we may likely see BTC testing the $6,600 low, then resuming the upward move to revisit the $7,000 resistance. Alternatively, the market will rebound, so that price will break through the resistances of $7,200 and $7,400. Neither of these levels has been broken since April 6.
Bitcoin Indicator Reading
The crypto is below the 50% range of the daily stochastic. This explains that the market has some bearish signals. This is contrary to the price action. The price action indicates that the bearish pressure has subsided as price consolidates above $6,700 support.
Key Resistance Zones: $10,000, $11,000, $12,000
Key Support Zones: $7, 000, $6, 000, $5,000
What Is the Next Direction for BTC/USD?
As Bitcoin survives the downward move, the next move is to revisit the $7,000 resistance. Presently, we can see that the market is consolidating above $6,700 at the time of writing. A Possible drop to $6,400 support is unlikely. The crypto can as well move up.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow