Having reached the $ 5857 level on March 30, 2020, bitcoin began to strengthen again. But its growth has stopped at $ 6,500, and is not moving despite numerous attempts to change the situation.
Since March 25, the bitcoin rate has remained in limbo, there is no certainty in the new trading structure. This was reported by trader CryptoShelby (@CryptoNewton), who advised sending bitcoin home, and the chart presented by him shows how the channel is going down.
Where will bitcoin go?
In early April 202, Bitcoin was trading close to the convergence area of several resistance levels: the $ 6,500 resistance area, the 25-day moving average (MA), and the downward channel resistance line. Despite the fact that the price passed through these levels, but the consolidation at the high level did not occur.
Since the testing of the downward support line of the channel was insufficient, it is difficult to accurately determine the angle of inclination. In the hope of a change, a line was drawn that runs parallel to the resistance line to act as an indicator of the degree of slope. If the price drops in the direction of the support line, then support can be found at the level of $ 5800 and in the area of convergence of this line.
Short-term trading period
As the short-term charts show, price may have been trading within a descending triangle. With a breakout that stretches across the entire height of the triangle, the pair may push back to the $ 6200 level.
Therefore, the bitcoin rate reached the area of convergence of several resistance levels at $ 6500. And it is quite possible to expect a drawdown to the level of $ 6200, or even to $ 5800.