Bitcoin Forms Bullish Weekly Candle but One Factor Could Spoil Its Uptrend
Bitcoin has once again found itself caught within a bout of sideways trading within the upper-$6,000 region following yesterday’s firm rejection at $7,300. Although the technical damage done by this movement appeared to be overtly bearish, BTC has been able to hold steady.
Analysts are now noting that BTC’s weekly candle is shaping up to be bullish, with a close at or above its current price potentially bolstering the crypto’s mid-term technical outlook.
It still remains unclear, however, as to whether or not this will be enough to push Bitcoin past the intense resistance that has formed just slightly above its current price level, which has led some analysts to be bearish in the short-term.
Bitcoin Holds Steady Following Firm Rejection at $7,300
At the time of writing, Bitcoin is trading up just under 3% at its current price of $6,900, which marks a notable climb from weekly lows of $5,800 that were set when bears attempted to reverse the uptrend established when BTC rebounded at $3,800.
The support at this level, however, was enough to propel the crypto higher, with it rallying all the way to $7,300 before facing a firm rejection here yesterday.
This rejection had led Bitcoin to form a highly bearish 4-hour candle, which some analysts anticipated to lead the crypto lower.
Despite this, its ability to resist seeing further downside is certainly a bull-favoring sign, and analysts are now noting that its weekly candle is shaping up to be highly bullish.
Big Cheds, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that the candle has risen substantially since Monday, with it now testing its EMA 8.
“Bitcoin: weekly chart update – Moving nicely off that double inside up, testing EMA 8,” he noted.
$BTC #Bitcoin Weekly chart update – Moving nicely off that double inside up, testing EMA 8 https://t.co/OgDBCQHY4u pic.twitter.com/FRYuy1NzlT
— Big Cheds (@BigCheds) April 3, 2020
BTC Faces Mounting Resistance as Analysts Show Signs of Tempered Bearishness
In spite of Bitcoin’s bullish weekly candle, it is important to note that it is facing mounting resistance in the region between $6,950 and $7,200, with a failure to break through this potentially being a catalyst for further downside.
One trader recently spoke about this resistance on Twitter, explaining that he won’t be bullish until BTC is able to flip this resistance into support.
“I refuse to become bullish into resistance levels. I’ll be bullish at support levels or when this area flips.”
Image Courtesy of Crypto Michaël
If BTC is able to surmount its EMA 8 before its weekly candle close, this could spark an influx of buying pressure that leads it significantly higher.
Featured image from Shutterstock.