Bitcoin Price Analysis (Week of April 3rd)

After a new attempt at breaking through the key resistance line and forming an upward trend, Bitcoin’s price has yet again fallen back to the level of $408. An uncertain growth like this can ultimately provoke a sharp drop.

Will a downward trend follow?

A medium-term trend has still not been formed. Bitcoin’s price underwent an upward impulse and has stopped at a key medium-term level, but the bulls have failed to hold at that resistance, which has naturally led to a drop back to the starting point.

Bitcoin Price Chart

That level was important, because the majority of the downward trading volume has been formed exactly at it.

Bitcoin Price Chart

Additionally, that point was a peak for a rebound within the downward trend. That’s what caused such a strong movement to happen at that level.

The price of $428, which is currently the top resistance line, is still the most likely point for a turn to growth. The bulls will have to fortify at that level and form a turn, and if that happens, there most likely will be a formation of a weekly upward trend with the closest target at $445-50.

Bitcoin Price Chart

For the downward trend to continue, the most important level will be at $408, where the largest positions are formed. If Bitcoin’s price holds at that point and starts forming a downward turn, the market is likely to continue to move toward the next resistance, which is at around $398.

Bitcoin Price Chart

Thus, for a weekly trend to start in either direction, Bitcoin’s price will have to fortify and form a turn at one of the levels of $408 or $428 (BITFINEX).

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