Bitcoin trading: Price prediction and technical analysis 11 April 2019
Look for consolidation between $5,400 and $4,800 before another test of the resistance zone near $6,000.
Our bullish call for Bitcoin was made back in February when Bitcoin was trading at $3,925. It was based on the technical analysis outlined below.
The weekly chart confirmed that at its low of $3,122, last December, Bitcoin held and then bounced from the critical support coming from the 200-week moving average.
And the Daily Chart below showed a rounded bottom pattern forming, a distinct loss of downside momentum, as well as bullish divergence as viewed on the Relative Strength Indicator.
After Bitcoin's recent rally, the first profit target at $4,650 (the 200-day moving average) was easily achieved. Bitcoin has continued to rally since that point; however, overnight it has closed well below its $5,466 intraday high. This rejection of higher prices is likely a result of the strong layer of technical resistance which is situated between $5,700 and $6,000. A period of consolidation between $5,400 and $4,800 therefore appears likely, before another test of the $5,700 to $6,000 resistance zone.
I remain core long Bitcoin, looking to take profit into the next layer of strong technical resistance, situated between $5,700 and $6,000. I intend to keep a final one-third portion of the original long Bitcoin trade for a move towards $8,000. The stop loss on the trade is placed at $4,050.
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Disclosure: The author does not hold any cryptocurrencies at the time of writing.