Bitcoin Touched $5400 After Surging 3.8%, Will This Level Hold?

Bitcoin Touched $5400 After Surging 3.8%, Will This Level Hold?
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Bitcoin (BTC) Price Analysis – April 10

Despite the overbought signal, Bitcoin is still trending high; today, price hits $5400 as a result of increased trading volume with a 3% surge in the last 24-hours of trading. However, the next few days of trading could set the price on a new high or low.

BTC/USD Long-term Trend: Bullish (1D chart)

Key Levels:
Resistance levels: $5800, $6500
Support levels: $4850, $4450

The April 2 surge has clearly push Bitcoin above the red zone of the 0.23 ($4000) Fibonacci Retracement Level. In fact, the breakout was significant over the 200-day moving average, pink line, forming a strong bullish candle. With today’s price increase, the market is above 0.618 ($5236) Fib. level.

BTCUSD-1D-Chart-April-10

On the daily RSI, BTC trading has reached an extremely overbought condition; a possible drop may me experience soon.

If the RSI crosses down the 70 line, a slight retracement may locate a support at 0.5 ($4845) Fib. level or perhaps 0.382 ($4454) Fib. level; touching the 200-day moving average line. However, the bullish rally may further meet a close resistance at 0.786 ($5800) Fib. level and above.

BTC/USD Medium -term Trend: Bullish (4H Chart)

As Bitcoin flags up, the 200-day moving average (pink line) is now acting as a solid defensive line for the bulls. After the last week price surge, BTC has actually followed a bullish wedge formation. The price action is getting tighter towards the angle of trend lines; suggesting a possible break.

BTCUSD-4H-Chart-April-10

The 4-hours RSI is now leveled below the 70 line after leaving the overbought territory on April 4. A break above the 1 (5488) Fib. level could propel the bulls to a new high at around $5600 level.

However, a significant break down on the wedge might probably correct Bitcoin to 0.236 ($4245) Fib. level; testing the 200-day MA, atop the red zone. The medium-term RSI should then leveled convincingly at the oversold territory.

About AzeezMustaph

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Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management

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