Bitcoin Faces Hard Resistance Right After Breaking Through Consolidation Area to $7,500: Crypto Market Daily

OKEx analysts believe that breaking the balance between the bulls and bears after a period of consolidation is a stage that the market must experience in a cycle.

Friday, April 24, 2020: most top cryptocurrencies are registering solid gains over the past 24 hours.

Bitcoin (BTC) is up 6 percent, having broken through $7,200 resistance, settling around $7,500 by press time.

Ethereum (ETH) is up just over 3 percent on the day, trading at $188, below its key resistance level of $195.

Ripple’s XRP is trading around $0.195, up nearly 4 percent over the past 24 hours.

1H chart BTC/USD Perpetual Swap data. Source: OKEx.com

Bitcoin’s 1-hour chart is showing that during the breakout hour yesterday, the price closed with a relatively long upper shadow. This is a signal of high selling pressure around the area between $7,650-$7,800.

In the next few hours, the trend proved that currently the bulls need time to rest and absorb more counters after the breaking. BTC’s trading volume chart also indicates that the level of bullish funds decreased significantly after rapid growth during the breakout.

Currently, investors should note that it’s dangerous to enter a long position as there is still a chance that the price will fall back to the previous area before confirming that the breakout is rational. This weekend can be a good period to confirm that — remember, even if the price stabilizes on $7,450, a further rebound is hard to break the resistance area between $7,700-$7,850. In the short term, the trend may consolidate around $7,500 and $7,850.

BTC needs to stabilize on $7,500 to rebound further

1D chart BTC/USD Perpetual Swap data. Source: OKEx.com

BTC gradually narrowed to the intersection of MA (30) and MA (60) at the daily level, and finally ushered in an upward breaking trend. The trend broke through the top of the consolidation area around $7,470 and then kept rebounding to $7,800. The price quickly fell back to above $7,500 and temporarily entered consolidation.

OKEx analysts believe that breaking the balance between the bulls and bears after a period of consolidation is a stage that the market must experience in a cycle. As the recent BTC rebound highs and pullback lows continue to approach, breakthroughs can possibly occur at any time. Coupled with the factor of Bitcoin’s upcoming halving, the probability of an upward breakthrough is naturally high.

However, it should be noted that not far above the consolidation area is the upper edge of the intensive trading area at the bottom of last year, which is between $7,700-$7,850. The resistance strength in this area can be seen at the daily or even weekly level. If the trend can stabilize on $7,500, the market may be expected to rebound further.

Resistance and support levels
Short-term resistance: $7,700
Medium-term resistance: $7,850
Short-term support: $7,450
Medium-term support: $7,250
$195 is key level for ETH

1H ETH/USD Perpetual Swap data. Source: OKEx.com

ETH was also blocked when testing the upwards resistance level of $195. The reason why this point is key is that the price plunge in March was based on this price as a starting point. It also forms the upper edge of the consolidation area before the peak in February.

Thus it is meaningful if ETH can break this point. In general, the market may usher in a unilateral pump. However, if it continues to be under pressure around $195, the trend may continue to pullback and make a breakthrough later.

Investors should be aware that if ETH can break $200, then we can expect a further pump. Before the pullback falls below $175, the bullish channel pattern won’t be broken.

The hourly volume level has been obviously increasing during this breaking, it may be a signal to rebound more if it can keep or exceed current levels.

Resistance and support levels
Short-term resistance: $195
Medium-term resistance: $200
Short-term support: $185
Medium-term support: $175

XRP sees weaker breakout

The breakthrough strength of XRP was significantly weaker yesterday, as it even failed to test the top of the current consolidation area. It is highly probable that it may continue to rely on the overall rebound of the market and rise slightly, and the resistance of $0.2 may be a crucial breakthrough point.

The fact that the current top of the consolidation area is almost at the same level as the bottom area in 2019 separates XRP’s pattern from the other two top coins. For XRP, breaking the resistance around $0.2 means we can expect a further rebound. However, the volume levels currently won’t be able to support a big breakout. Investors better wait for the pump of other major coins and then enter.

Resistance and support levels
Short-term resistance: $0.2000
Medium-term resistance: $0.2170
Short-term support: $0.1940
Medium-term support: $0.1895

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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