Bitcoin Price defends all its gains – but a decision point looms?

Bitcoin (BTC) maintains its slow upward trend today, after several rounds of stiff defense after the terrible April 2 breakout.

The Support / Resistance Zones (S / R) that defined the new market structure of BTC after April are now being progressively destroyed by an upward channel (green, down) rather than by abrupt launches.

The hollows likely to threaten these areas have so far only briefly managed to break the exponential moving average at 55 hours (EMA, pink below). However, the area around $ 5,040 seems to have formed a solid resistance level for the main crypto.

These three factors – the uptrend channel, the 55% EMA and the $ 5,040 cap – help to reduce the price to a potential decision point.

(source: TradingView.com)

On a slightly longer time scale, the shocking escape of Bitcoin and the movements that followed it are very similar to a bullish flag pattern – suggesting another break. Although this may seem unthinkable after so much progress, Bitcoin has already defended two aggressive offensive sales and established a local upward trend.

(source: TradingView.com)

Looking at the daily calendar, we can see that all the features of the new market structure contained between $ 4,200 and $ 6,000. The largest Bitcoin rejection occurred squarely in the middle of a S / R zone, at $ 5,345 on the Coinbase chart. A new test of this zone could weaken it and start to break it.

If Bitcoin decided to make a well-deserved correction, maintaining the $ 4,600 mark (where the large 200-day moving average is situated) would be ideal and would allow us to remain optimistic in the medium term. Failing to maintain this level, there is a decent support node filtering the critical $ 4,200.

A return to $ 4,200 would probably invalidate the argument, advocated by many analysts, that the 2018 bear market / "crypto-winter" is really over. In fact, a successful new test of the 200 MA would be very healthy and would greatly contribute to market confidence.

(source: TradingView.com)

(The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice, so always do your own research.)