Bitcoin Breaks Up From Consolidation And Bucks Entire Economic Trend – Too Early To Celebrate?

Bitcoin

  • Bitcoin saw a 6.5% price increase over the past 24 hours of trading as it tries to head back toward $6,000
  • The cryptocurrency recently broke above a short term consolidation pattern but must break $6,000 before we can become slightly optimistic.


Whilst the wider economy continues to tank Bitcoin is seeing some form of relief as it increases by 6.5% over the past 24 hours of trading. The cryptocurrency broke up above a short term consolidation pattern as it attempts to break above $5,600 and head back toward $6,000. 

Meanwhile, major indices such as the S&P 500 and the Dow Jones Industrial Average continue to see further price declines. Even Gold dropped by a total of over 4% throughout the past 2-days of trading.

Whilst this latest price increase is promising for Bitcoin, it is still too early to become positive as Bitcoin could just be lagging behind the rest of the economy. 

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

BTC/USD. Source: TradingView

Market Overview

Taking a look at the daily chart above, we can see that Bitcoin finished yesterday’s trading session at the upper boundary of the triangle. In today’s session, it went on to break above the triangle as it now tests resistance at $5,600.

Short term prediction: BEARISH/NEUTRAL

Bitcoin still has to be considered as neutral with the 50% price fall in March alone, however, this recent break above the consolidation pattern could help to turn the market neutral. A break above $6,000 would confirm this.

Toward the upside, the first level of resistance lies at $5,911 which is provided by a bearish .382 Fib Retracement. Above this, resistance is located at $6,000, $6,174, $6,540 (bearish .5 Fib Retracement), and $6,800.

Toward the downside, support lies at $5,200 and $5,000. Beneath this, support lies at $4,800, $4,577, and $4,140.

Key Levels

Support: $5,200, $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436..

Resistance: $5,600, $5,911, $6,000, $6,500, $7,000, $7,200, $7,500, $7,600, $8,000, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.

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