Since the start of April, the $424 price level has become very significant from a technical viewpoint. So far this month, this level has acted as resistance about four times. When price finally made it above $424, on the 12th, $424 started acting as support, and price is now trading well above this pivot zone. Mark this area on your charts!
There is a nice trend developing now, however, any further rallies might encounter resistance around the $440 area. The chart for February shows that the $440 level acted as resistance twice that month, and it seems price hasn’t been back to this level since the start of March. Given the prior history of this area, I would say that $440 is very likely to act as resistance again in the near future.
Following the last big rally in November of last year that pushed the price of Bitcoin all the way to $500, the market has been trading in a progressively tightening range. The daily charts show a clear triangle formation, which signals that pressure is building up in the market. These formations usually occur prior to big breakouts, and with the halving of the Bitcoin block reward projected to take place sometime this summer, the charts may be giving us a hint. Volatility is about to make a big comeback!
Image credit: 1
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.