On the daily time frame, it can be seen that bitcoin price has been enjoying a bullish run as of late. After BTCUSD dropped to $3,858.00 from $9,200.00 earlier this month, the cryptocurrency has climbed above the $6,000.00 psychological handle. However, bitcoin price now looks to be testing critical resistance at $6,650.00.
Will there be enough buyers to push the cryptocurrency above this price?
This level presents a confluence of resistance. For one, on the daily time frame, it can be seen that the market previously found support at this price in November, December, and January. When drawing the Fibonacci retracement tool from the high of March 7 to the low of March 13, it can also be seen that this price coincides with the area between the 50% and 61.8% Fib levels.
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Meanwhile, a closer look at the 1-hour time frame, it can also be seen that there is trend line resistance around the area. This becomes apparent when you connect the highs of March 25, March 27, and March 30.
A close below the 100 SMA and 200 SMA on the 1-hour time frame could indicate that bitcoin price may soon trade lower. Near-term support is at yesterday’s lows at %5,874.000. If support at that level does not hold, the next floor for BTCUSD could be at $4,840.00 where it bottomed on March 12.
On the other hand, a strong close above $6,650.00 could mean that bitcoin price may soon rally to $8,200.00. This price coincides with the 100 SMA and 200 SMA on the daily time frame which may offer BTCUSD with resistance.
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