26.04.202117:02 Forex Analysis & Reviews: Bitcoin approaches important resistance

The world's first cryptocurrency is approaching a very important resistance after it rallied $6,000 on Monday. It is noteworthy that none of the cryptocurrency experts are trying to explain what is happening. That is, Bitcoin has skyrocketed 6,000%, which is more than 10% at the moment, and there are no comments in the leading cryptocurrency communities. The US Treasury no longer pursues large financial institutions with its fines, and US President Joe Biden no longer wants to raise taxes. The electricity supply in Xinjiang County is fully restored, and institutional investors want the bitcoin again. We believe that the rebound from the lows reached on Sunday turned out to be sharp, too sharp. This happens when the price hits a level where a large number of pending buy orders are located. If you look closely, the sharp increase began from the level of $47,400, which is nothing more than the previous local low.

Thus, it can be assumed that market participants concluded that the price would not go below the minimum of April 23, so they placed purchases at the minimum from this date, which led to a sharp rise in prices on Monday night, that is, at the Asian trading session. However, if the bulls won the local battle, then the war can still be lost. The fact is that having studied the last three corrections for bitcoin within the framework of the current trend, you can see that the cryptocurrency was usually falling sharply, but it was recovering more slowly. Moreover, each next price peak was located at a shorter distance from the previous one than the previous one. That is, the "bullish" trend was clearly weakening. Now the picture is as follows: a sharp drop in quotes - in 10 days, "digital gold" fell in price by $15,000, but today a sharp rise in prices by $6,000 also followed. In this way, all this looks like a desperate attempt by buyers to restore the "bullish" trend, but not a "natural" resumption of growth in bitcoin quotes. However, let's see, we should not guess. Below, we will consider an illustration, which can be used to make a more accurate prediction.

Let's take a look at the hourly time frame, which we have already provided in the last articles. There is a clear downward trend line with at least three pivots. In the next 6-24 hours, bitcoin quotes can reach it, and it turns out that the future of the cryptocurrency will be decided near it. If it is overcome, then the chances of new growth will increase many times. If there is a rebound, then the probability of a new round of correction is high. We tend to bounce and resume correction, but this is the market. Here you cannot be 100% sure of anything. You should only work with clear signals.