Categories: Market Overview

Bitcoin (BTC): Rally to $6K will be tested several times

Bitcoin (BTC) is on the offensive, having defended key support, but a rally to $6,000 faces a number of resistance hurdles lined up in the $5,400–$5,900 range. The leading cryptocurrency by market capitalization fell more than 5 percent to $5,000 on April 25 after the New York Attorney General’s office alleged that Bitfinex had lost $850 million and used a secret loan from affiliated firm Tether to hide the loss. The price pullback, however, was short-lived. BTC again bounced up from the crucial 30-day moving average (MA) resistance on April 30 and is currently trading at $5,700.

Additionally, BTC closed last month above the former support-turned-resistance of the 21-month exponential moving averages (EMA), solidifying the long-term bullish breakout, as discussed yesterday.

As a result, a consensus seems to have built in the market place that BTC will likely see a quick rise to $6,000 in the short-term.

While the outlook is indeed bullish, a sharp rally to $6,000 may not be so smooth with the following levels possibly offering stiff resistance.

Resistance 1: June 2018 bottom at $5,780

Resistance 2: August 2018 bottom at $5,880

3 Price Hurdles That Could Complicate a Bitcoin Rally to $6K, CoinDesk, May 03
The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

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