Bitcoin could correct before a new rally

03.04.2020 12:41:05

On April 2, Bitcoin was able to rise above the price of $7000 and tested the mark of 7200, but could not pass. At the time of publication, the BTC/USD pair is trading around $6984. Today, the BTC/USD continues to try to overcome the level of $7000, but so far without success. And soon, BTC/USD may roll back to the support level of 6500 before starting new attempts of testing of 7000.

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If you look at the BTC/USD hourly chart, you can see that a short-term bullish trend is forming with support around $6715. At the same time, a weekly maximum of $7236 is set.

Now the pair is trading above the support level of $6800, if it manages to stay above this level, then with the high probability it will continue to grow. And the level of $7000 no longer seems so impregnable. Bulls are activated closer to the mark of 7000 so that later they reach 7200. If the mark of 7000 is broken, we will see a new weekly maximum.

If the BTC/USD pair can’t keep above the level of $6800, this may expand the correction down to the level of $6500. But here the bulls will protect it and the bears are unlikely to manage to sink below.