Name Price24H (%)
Bitcoin (BTC)
$20,860.00
3.65%
Ethereum (ETH)
$1,220.73
7.69%
BNB (BNB)
$241.79
2.25%
Cardano (ADA)
$0.471121
3.27%
Bitcoin Resistance Rises to $8,460 After Unconvincing Breako...
Bitcoin, News

Bitcoin Resistance Rises to $8,460 After Unconvincing Breakout

Bitcoin (BTC) saw small gains last night, but the weak move did little to further the bull case.

The target resistance level to beat yesterday (long-term descending trendline) was $8,285. A high volume close (as per UTC) above that mark would have signaled a long-term bullish trend reversal.

The daily chart below shows bitcoin closed yesterday at $8,273 on Bitfinex, meaning the breakout remained elusive. However, a new 24-hour candle (as per UTC) opened above the descending trendline support (seen today at $8,230), creating a false picture of a bullish breakout.

Daily chart



So, while it appears as though the bull breakout has happened, the move is more of a sideways breach (unconvincing breakout) of the long-term trendline hurdle.

As such, the major level to watch out for on the high side is now $8,460 (April 15 high). A convincing move above that level would establish higher highs and higher lows pattern (bullish setup) and would likely confirm a longer-term bull reversal.

The risks of a pullback are still high, given the unconvincing breakout. A failure to hold above the descending trendline support (former resistance) of $8,230 could yield a drop to $7,823 (April 17 low).

The key levels to watch out for in the next day or two are resistance at $8,460 (April 15 high) and support at $7,823 (April 17 low).

As of writing, BTC is changing hands at $8,310 on Bitfinex.

View

  • A daily close (as per UTC) above $8,460 would open up upside towards $9,000-$9,177 (March 21 high).
  • A move below $7,823 would indicate the rally from the April. 1 low of $6,425 has ended and could yield a sell-off to $7,200-$7,000.

Bitcoin image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Source: CoinDesk.com

Newsletter

Sign up to receive awesome content in your inbox, every day.

We don’t spam!

coinmag

Cryptocurrency news, blockchain news, markets news, cryptocurrency analysis, cryptocurrencies prices.