In our latest Bitcoin analysis, we observe that after a previous bearish breakout below a long-term ascending channel, Bitcoin’s price has recently rebounded above that critical level. This rebound suggests that bulls might be regaining control and points to the potential for a bullish trend. The current Market conditions, including challenges in the US bond Market, could further support this upward momentum. Traders should keep an eye on fundamental factors influencing Bitcoin’s price, as the possibility of a sustained upward trend remains. FXOpen offers various cryptocurrency CFDs, providing traders with competitive spreads and leverage options. Always consider speaking to a professional for personalized financial advice.
In the latest update on Bitcoin’s performance, the cryptocurrency has shown some critical movements that traders and enthusiasts should watch closely. Our previous analysis on April 4 highlighted a long-term ascending channel. There were indications that Bitcoin might break below this channel’s lower boundary.
Recently, bears indeed forced the price down, influenced by a wider sell-off in risk assets amid rising concerns about a global recession due to trade wars and new international tariffs. But what does the current BTC/USD chart reveal about Bitcoin’s potential next steps?
Current Bitcoin Technical Analysis
Despite the bearish trend, Bitcoin has not sustained the pressure below significant support levels. It’s currently trading above the previous breakout point, which could indicate that buyers are starting to take control again. If the recent bearish breakout turns out to be false, we might see a push above the marked resistance line. Such a scenario would support the ongoing uptrend shown in the BTC/USD chart, further emphasized by a divergence noted on the RSI indicator.
The path forward for Bitcoin may heavily depend on external factors. For example, the ongoing issues in the US bond Market tied to tariff policies could create conditions favorable for a bullish Bitcoin movement. Some experts, including BitMEX co-founder Arthur Hayes, suggest we might be entering a phase of "only up" for Bitcoin’s price.
Investors interested in trading cryptocurrencies like Bitcoin and Ethereum can explore the offerings of FXOpen, which provide competitive spreads and leverage options.
Remember, trading in cryptocurrencies via CFDs is available only for professional clients through FXOpen UK, and it is essential to understand the risks involved. This article shares insights based on FXOpen’s analysis and should not be considered financial advice.
Keywords: Bitcoin, BTC/USD, cryptocurrency trading
Secondary Keywords: bearish breakout, ascending channel, support levels
What is Bitcoin price resistance?
Bitcoin price resistance is a level where the price doesn’t go up easily. It acts like a ceiling, making it hard for Bitcoin to rise above that point.
Why does Bitcoin face resistance?
Bitcoin faces resistance because many traders decide to sell at that level. This selling can stop the price from climbing higher and cause it to drop back down.
How can I spot resistance levels in Bitcoin trading?
You can spot resistance levels by looking at past price charts. If Bitcoin has struggled to go higher at a certain price in the past, it could be a resistance level again.
What happens if Bitcoin breaks through its resistance?
If Bitcoin breaks through its resistance, it might continue to rise. Traders often see this as a sign of strength, leading to more buying as they expect higher prices.
Is resistance the same as support?
No, resistance and support are different. Support is a price level where Bitcoin tends to stop falling and can bounce back up, while resistance is where it struggles to rise.