Bitcoin traders look at $ 5,600 as BTC suddenly increases: can the rally continue?

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In the last few hours, Bitcoin (BTC) and its altcoin brothers have begun to gather discreetly. At the time of writing this article, BTC has grown 3.5% over the last 24 hours, trading at $ 5,240 each, according to data compiled by Coin Market Cap.

This movement is not as noticeable as the 15% daily gain recorded at the beginning of April, which saw retail and institutional trading activities ignite, with BTC exceeding both key resistance levels. namely $ 4,200 and $ 4,600. However, the recent influx of consumer pressures comes after crypto-currencies have experienced a quick 10% sell over the weekend, which keeps bears from following suit.

Related Reading: Bitcoin beats a retreat under $ 5,000, has the final surrender begun?

If bitcoin exceeds $ 5,600, $ 6,000 could be in store

According to a recent chart from Credible Crypto, with Tuesday's decision, BTC is about to break a triangle, which has depressed assets and slowed trading activity in recent days. If the upper limit of the triangle crashes as Credible predicts, Bitcoin could hit a record $ 5,500 since the beginning of the year, rising to $ 5,600 beyond $ 5,600 each time 39, a local resistance level is exceeded.

Although a significant overshoot of $ 5,600 does not seem noticeable, especially since the monthly record of Bitcoin is $ 100 less than this figure, analysts estimate that an incursion above the 5,000 mark dollars will be huge for bulls. In fact, as a popular merchant, The Crypto Dog, described in a chart published many hours ago, not only would a $ 5,600 raise break a flat triangle, but it would place BTC in a zone of low liquidity .

Any appearance of buying pressure observed in this region could propel Bitcoin to $ 6,000. As the analyst writes: "$ 5,600 is the only thing between us and $ 6,000".

Graphs up

Admittedly, $ 5,600 could be rejected, but a multitude of chartists are categorical: from a macro point of view, BTC still looks hot. As the trader B.Biddles pointed out, Bitcoin's one-week chart from August to now looks flawlessly at a "flip-flop fundament" (BARR Bottom) featured in a remarkable book technical analysis.

If the BARR Bottom trend is revealed, explains Thomas Bulkowski, the author of the manual, BTC will soon see an "ascending course" propel cryptocurrencies in their next rise.

Fundamental factors also give BTC and other digital assets the green light to go higher. As Cumberland, a cryptographic-friendly DRW branch, noted on Twitter, as central banks delayed hate rates, risky assets like Bitcoin rallied. With institutions such as the US Federal Reserve and the European Central Bank looking to build on this momentum, this "risky" recovery could easily continue.

Should the decline in cryptographic trading activity be a concern?

Analysts are dropping in droves, but over the last few trading days, the level of trading activity has begun to decline. In fact, Coin Market Cap's 24-hour volume dropped to $ 42 billion, almost half that recorded from April 3 to 7, after the April 2 breakaway.

It is important to note that the figures of this data provider are widely considered inflated, but Bitwise's Bitcoin volume index, which only considers regulated exchanges, has accentuated the fact that the trade is down.

Should this be a concern for bulls?

In the eyes of some chartists, yes. But if we take Biddles' analysis into account, a drop in volumes could indicate an uptrend. Odd, huh. As the Bitcoin trader explains, "the declining volume is rising in this model (ascending triangle)" and indicates that a faster move higher is likely in the BTC cards.

Featured image of Shutterstock



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