Bitcoin made a brisk move today above the $7700 level, demonstrating the excitement of the market ahead of the weekend's close. Trading at $7708 did not last long, but has made fresh new highs from Thursday's notable rise to $7742. At the time of writing, Bitcoin's trading value is only slightly fluctuating around $7500-$7569, while traders are trying to push the price above $7600.
Many Altcoins have also recovered in price
Many Altcoins have also recovered in price as Bitcoin surged above $7700 early this morning, but the leading coins like Ether (ETH), Chainlink (LINK) or Tezos (XTZ) are still dependent on movement. price of Bitcoin in order to continue its upward momentum.
As can be seen on the 4-hour chart, the price of Bitcoin held steady near $7600, which is the same as the beginning of the reversal candlestick pattern on March 12 that sent the price plummeting to $3765. We can also see the Tweezer Top of Bitcoin price forming at $7980 on March 11-12.
According to previous assessments of primexbt trading experts, this price is close to touching the 61.8% Fibonacci retracement level; Today as well as April 23, the price of the coin struggled to break through this resistance level.
Going into a period of low price volatility like today, if Bitcoin fails to hold above $7475 (red bottom line), the price will tend to drop to the previous support level.
The Moving Average Convergence Divergence (MACD) has dropped below the signal line on the 4-hour chart and the histogram of the MACD (MACD Histogram) has turned negative. The RSI (Relative Strength Index) has stopped rising and is currently at 62.5.
Traders also noticed that the price has been moving above the Bollinger Bands since April 23 when the value of the digital asset surged to $7752. After breaking the threshold, the price usually eventually falls to the lower support level. In this case, it's the 20-day moving average (20-MA) of the Bollinger Bands, which is slightly below the high volume VPVR node with the 50% Fib retracement level at price $7130.
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If it fails to hold the $7475 level, the Bitcoin price will most likely drop to $7130
The daily timeframe shows that the price of Bitcoin is at a fairly stable level as the coin has distanced itself from the previous 19-day resistance area at $7250-$6900, but with a retest of $7250-$7100 it is still ability.
The two most recent candlestick patterns both show price swings while the “Doji” shows that competition between buyers and sellers is shaping the price trend. Trading volume is usually price dependent, and on a daily timeframe we can see buying increasing while the peaks and troughs remain the same.
If the coin's value can reach a high above $7750, it is likely that the price will reach the 61.8 Fib level ($7924). Above this level of 61.8 is a gap on the VPVR chart, suggesting a break of this level could take the price above the 100 and 200-day moving averages at $8700.
With the close approaching, traders will have to make a decision whether to buy a breakout of $7700 or $8000 or buy a bottom at $7150. In recent analysis, Cointelegraph contributor Michael van de Poppe set out his expectations for an upcoming bull market:
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