Bitcoin (BTC) stopped near the key resistance level on Monday, but the likelihood of a recovery rally is still high.
Yesterday, the bulls managed to defend the $ 6000 support line, after which the closing occurred above the level of $ 6250 (the maximum of the Doji candle), which created a reserve for the corrective rally.
The peak of yesterday was $ 6341, but the closing on UTC occurred at a price of $ 6247. Thus, the short-term bullish reversal has not yet been confirmed. Nevertheless, the probability of the rally remains very high, as bitcoin stayed above $ 6,000. Technical indicators also speak in favor of bulls.
On the other hand, problems for the growth rate will arise in the range of $ 6,400 - $ 6,800, where strong resistance is concentrated. At the time of writing, the BTC rate is $ 6174.
Despite the fact that the BTC failed to close above $ 6250, the Relative Strength Index (RSI) remained in the bull zone.
At the same time, the Money Flow Index (MFI) - an indicator that takes into account both the rate and the volume of trade - also formed a higher minimum, which is a bullish sign. MFI is growing, which indicates an increase in the degree of pressure from the bulls.
Nevertheless, on their way the bulls will have to face a number of difficulties at the following levels of resistance:
$ 6417 (moving average for 10 days)
$ 6425 (April low)
$ 6,500 (April 6 minimum)
$ 6533 (March 30 minimum)
$ 6,680 (downward resistance)
At the same time, the long-term outlook remains pessimistic, and the risk of falling below $ 6000 can not be discounted. The main levels of support will be:
$ 5755 (minimum of the Doji candle)
$ 5400 (November minimum)
$ 5090 (support for an ascending wedge)
Bitcoin has a place to fall, and in case of growth there will be strong resistance on the way, and therefore the task of bulls is unlikely to be solved simply.
Obviously, the bulls are still trying to implement a recovery rally, the goal of which is downward resistance - $ 6,680. A daily close above this level will open the door for a breakthrough to the moving average in 50 days ($ 7464).
Closing below $ 6,000 will re-energize the bears and allow them to push the exchange rate to $ 5,000.
