Market Analysis: $5,300 Resistance Level Behaving Like a Black Hole, Bitcoin (BTC) Briefly Rises to Over $5,400 but Pulled Back Down

April 10, 2019 / by Zachary Mashiach
The first image of a black hole, from the galaxy Messier 87.CreditCreditEvent Horizon Telescope Collaboration, via National Science Foundation

Today, the first ever picture of a black hole was unveiled by the Event Horizon Telescope. Strangely enough, the stubborn $5,300-$5,400 resistance level is behaving like a black hole today.

Throughout the morning and early afternoon, Bitcoin (BTC) rose up from $5,200 to $5,270. Then a short squeeze caused Bitcoin’s (BTC) price to quickly rally to $5,440. It appeared that, finally, this stubborn resistance level had broken. It is notable that this is the fourth time in the past 10 days that Bitcoin has tested this resistance level.

However, like a black hole, the gravity of the $5,300-$5,400 resistance level was too much for Bitcoin (BTC) to overcome, and Bitcoin (BTC) got sucked downwards to as low as $5,240 before stabilizing near $5,300.

Bitcoin’s (BTC) trading activity today resulted in high volatility across the crypto market, but in general, the crypto market is bullish. Ripple (XRP) is up 1.2%, Litecoin (LTC) is up 1.2%, Bitcoin Cash (BCH) is up 1.8%, EOS is up 3.3%, Stellar (XLM) is up 0.7%, Cardano (ADA) is the big winner of the day with a 5.6% gain, Tron (TRX) is up 1%, Bitcoin SV (BSV) is up 0.9%, Monero (XMR) is up 2.7%, and Dogecoin (DOGE) is up 4.7%.

Due to the sudden reversal of the Bitcoin (BTC) rally this afternoon, some major cryptocurrencies have dropped into the red. Ethereum (ETH) is down 0.2%, Binance Coin (BNB) is down 1.1%, Dash (DASH) is down 1.1%, and IOTA (MIOTA) is down 0.1%.

The total crypto market cap was near $181 billion 24 hours ago but rose as high as $186 billion during this afternoon’s rally. However, when Bitcoin (BTC) was dragged back down to $5,300, the total crypto market cap declined to $183 billion. Overall, this is a gain of $2 billion on the day for the total crypto market cap, which recovers the losses from yesterday’s mildly bearish trading action.

All eyes are on Bitcoin’s (BTC) $5,300-$5,400 resistance level. Today is an excellent example of how it is good to wait several hours before declaring that a resistance level has been broken to ensure that the price is not going to come crashing back down. That being said, Bitcoin (BTC) has made progress towards breaking this critical resistance level, and it is in striking distance to make another attempt at breaking it.

If Bitcoin (BTC) can truly break the $5,300-$5,400 resistance level, the crypto market will be poised for some very bullish days. On the other hand, if this resistance level remains stubborn, some bear sentiment may take hold, and Bitcoin (BTC) could slide towards $5,000.

In general, the market has been siding with the bulls since early February with strong buying pressure outweighing bearish sentiment. Since CME Bitcoin futures traders likely went long for April, considering the big gains seen since the last CME Bitcoin futures expiration, it seems more likely than not that Bitcoin (BTC) and the crypto market will see some additional gains in April.