The Bitcoin cryptocurrency market is in a positive trend. The digital asset is recovering from a mass sale that began on March 7th. The chart data and technical indicators suggest that the coin will rise in price to $ 7,000 by March 31.
Key Points
⦁ The upward movement is gaining momentum due to overcoming the resistance zone at around $ 6,200.
⦁ The BTC rate aims at the nearest resistance barrier – $ 6,650.
⦁ A downward declining triangle line with a resistance of $ 6,000 was overcome.
On March 23, the Bitcoin exchange rate pushed off from a powerful support zone in the $ 5,800 area and then overcame resistance barriers at $ 6,000 and $ 6,400. Over the past day, BTC/USD has risen in price by 14%. At the press time, the price of BTC is consolidating in the range above $ 6500, while the bulls are configured to break through the nearest resistance barrier of $ 6650.
With a high probability, the bears will protect the key resistance zone ($ 6650). If buyers break through this barrier, the price of the coin will rise to $ 7,000. If the bull trend persists, the Bitcoin rate could potentially reach $ 7500, after which correction will occur.
The Risk of Bitcoin Dropping Remains
Unsuccessful attempts to overcome the resistance at the level of $ 6,650 will provoke a downward movement. The nearest support area is located at around $ 6,450. However, the key barrier is at $ 6,200, so the price will roll back to this level. Breaking through this barrier will mean a further drop in the cost of BTC up to $ 5800.
Given the uptrend line that arose on March 16, the BTC rate may well be adjusted to $ 6,000 soon. Nevertheless, in the medium term, the price of the asset should increase, since the triangle has been broken up. Now the border of the bull trend is the main area of support. If it can withstand the pressure of the bears, then it is worth counting on an increase in the cost of BTC. Also, you should not forget about halving in the Bitcoin blockchain, which will be held on May 13. After this event, the inflation rate of the coin will decrease from 3.83% to 1.91%, because the reward for adding a block will decrease from 12.5 to 6.25 BTC.
Technical indicators:
⦁ MACD indicator for 4 hours – in the bullish trend zone.
⦁ The RSI index for 4 hours is above 60 (in the neutral area).
⦁ The main support level is $ 6200.
⦁ The main resistance level is $ 6650.
⦁ The nearest pivot points are $ 5767 and $ 6707.
Source: en.bit.news
