After Bitcoin reached $30 000 again we saw significant volatility in the price. On Thursday we reached the around the same level again, which ultimately market a lower high.
The area that was marked as crucial for the bulls to support has played out with precision. We are approaching a new week and it is crucial to have a plan mapped out.
Other currencies recorded red days as a slight relief occurred. As Bitcoin stands in a resistance zone people start to question if the momentum will continue or bulls will get beaten.
BITCOIN
BTC had green 48 hours with the price regaining the most recent high of $30 000. However, this does not necessarily mean that we will see more upside from here. BTC did support $28 400, as stated in the last analysis and a slight pump followed. Bulls will have to record higher levels on BTC but it will be highly unlikely to see a move further than $31 000 – $32 000.
On April 19th a Major Resistance area has been recorded. The price of BTC then saw immense selling pressure and the area was not touched. It is interesting to see that during the drop from recent high the selling orders have not moved significantly and that means the levels are still valid. The area between $30 600 – $32 400 looms big selling pressure on BTC and it will be very hard for bulls to gain that momentum to push the price above it.
The current price of BTC has been moving with very little volume in an area of resistance. We saw this occurrence but in a bigger perspective when on April 10th BTC did “crab-walking” before a volatile move followed. This means that it is most likely that we will see a sharp move from this current level.
When volume is low and the price barely moves it is an indicator that traders are anticipating entering the market. This is the time where most of the time a big amount of people lose their positions, because we usually see a move to one side before a sharp one to the other and that is called a squeeze. Positions get liquidated to shake the leverage and traders out.
Looking to see BTC going back to $28 900 – $28 400 and that will be a desired level to catch a retracement up in the short term. If the price falls down sharply it is reasonable to avoid entering the market. Losing this level will prove weak momentum for BTC. The bulls have set their orders between $27 200 – $26 500, which means that they have moved their target to protect the price to lower levels. This is essentially a warning sign because it means that the pump is not supported with buying power. If the orders had moved upper than the supported area that would have proved bullish for BTC.
LINK FOR THE BITCOIN CHART HERE!
SOLANA
SOL has outperformed the majority of the top altcoins as the price recorded over 10% increase in the last two days. The current price is located at an ex-support and now resistance.
Besides the fundamental aspect potentially moving the SOL price higher it is more likely that we see a move down to around $22.20 and an opportunity to enter with a long position.
Breaking out from this current resistance will cause the price to chase recent highs with the first target of $25.00 – $25.40. It is worth mentioning that there are more buying orders defending the lower levels on SOL than selling ones that are positioned next to the recent high.
Will be looking to buy SOL around $22.20 and opening short positions at both the Major Sell Zone, which is positioned between $26.00 – $27.00, and the next resistance – $25.00 to $25.40.
