Market Analysis: Bitcoin (BTC) Steadily Rises Over Weekend and Now Faces Resistance at $5,300-$5,400

April 8, 2019 / by Zachary Mashiach

Bitcoin (BTC) has been steadily rising since dropping to a local minima of $4,800 on Thursday afternoon. There was a resistance level at $5,100, and this resistance was tested on Saturday when Bitcoin (BTC) rose to $5,200 before being pushed back to $5,000. Yesterday evening, Bitcoin (BTC) definitively broke the $5,100 resistance level and rose as high as $5,330. Bitcoin (BTC) was pushed back during the early morning but did not fall below $5,100, and since the morning, Bitcoin (BTC) has been steadily rising again and appears to be getting ready to make another attempt at breaking through $5,300.

The $5,300-$5,400 resistance level has been in place since April 3 and is the critical level to watch to see if the crypto market can extend the past week’s rally. On average, Bitcoin (BTC) has been on an uptrend since the rally began on April 2. That indicates that buying pressure is dominant in this market and suggests that Bitcoin (BTC) has a solid chance of getting through the $5,300-$5,400 resistance level. Further, it is likely that CME Bitcoin futures traders went long this month, considering the major gains since the last CME Bitcoin futures expiration. The combination of CME Bitcoin futures traders going long and the general buying pressure in the market is creating favorable conditions for the rally to continue through the end of the month.

The price of Bitcoin (BTC) was hovering in the $6,000 to $6,500 range during September and October before the big crypto crash in November. If Bitcoin (BTC) can get through the $5,300-$5,400 resistance level, it will perhaps rise back to $6,000 over the coming weeks.

If Bitcoin (BTC) fails to break $5,300-$5,400, it may go back to support at $5,000 or $4,800.

The crypto market is mixed today due to Bitcoin (BTC) and the rest of the crypto market contending with their respective resistance levels. Ethereum (ETH) has seen a gain of 4.9% and is now trading near $181, nearly $100 higher than the bear market low in December. Tron (TRX) is the big winner of the day with an 8.4% gain. Other cryptocurrencies in the green today include EOS, which is up 1.2%, Stellar (XLM), which is up 1.6%, Dash (DASH), which is up 1.9%, and Monero (XMR), which is up 1.6%.

As for the bears, Ripple (XRP) is down 0.3%, Bitcoin Cash (BCH) is down 2.7%, Litecoin (LTC) is down 4.4%, Binance Coin (BNB) is down 4.4%, Cardano (ADA) is down 3.6%, Bitcoin SV (BSV) is down 3.6%, IOTA (MIOTA) is down 1.7%, and Dogecoin (DOGE) is the big loser of the day with an 8.4% loss.

Even though several cryptocurrencies are in the red, over the past 24 hours, the bulls have outpaced the bears, and the total crypto market cap has increased from $181 billion to $183 billion. Since Thursday, the total crypto market cap has risen $16 billion, and since this rally started a week ago, the total crypto market cap has gained $36 billion. Since the bear market low in December, the total crypto market cap has increased by $83 billion.

Overall, the crypto market has seen consistent and significant gains over the past week, continuing a bullish trend that began in early February. The crypto market is poised to rally even more if Bitcoin (BTC) can break past $5,300-$5,400, but for today, it is mixed since Bitcoin (BTC) has yet to break through this critical resistance level.