Recently, Bitcoin was in a price spike as the market reached a high of $7,700 resistance. After a pullback above $7,500, the crypto consolidated above $7,500 for three days before the resumption of the uptrend.
BTC/USD – 4 Hour Chart. Source: Trading View
Bitcoin has made excellent moves in the last few days. At first, the crypto moved up from its low of $6,800 to $7,200. Secondly, Bitcoin rebounds and breaks through the resistances of $7,200 and $7,400 to reach a high of $7,700. This puts to an end the three weeks old fluctuations between $6,600 and $7,400. Today, BTC surges ahead to the high of $7,700 after consolidation above $7,500.
The market is showing some bearish signals of a possible resistance in the upward move. BTC is showing some signs of exhaustion in the uptrend. The bulls are likely to face a more bearish reaction near $8,000. Bitcoin will rise to $9,000 if the bulls push above $8,000 resistance. Meanwhile, the coin is at level 67 of the Relative Strength Index period 14. The price is likely to rise because the market is in the uptrend zone and above centerline 50.
Bitcoin Approaches Overbought Region
On the daily chart, the crypto is in an uptrend. On April 23, the coin rebounds as the market reaches a high of $7,719. Nonetheless; the bulls are likely to face strong resistance at the $8,000 price level. The stochastic indicator confirms as the bands are above 80 % range.
This indicates that the market has reached the overbought region. We expect the emergence of sellers to push the coin downward. It is not clear the extent of the downtrend. The market will resume its upward move if price falls and it is sustained above $7,400 support. On the other hand, a downtrend will resume if the bears break below $7,400 and $7,200 support levels.