Could Bitcoin Price Rise above the Psychological Resistance of $6,000?

Crypto Advice

Bitcoin is continuously increasing with the current bullish developments on the technical charts and could gain height above the resistance of $6,000. The cryptocurrency printed a high of $5,970 on Bitstamp (seen on November) crossing the resistance of $5,780. On April 23, Bitcoin’s resistance turned-support was $5,627. Bitcoin soon recovered from levels below $5,627 coupled with a level above resistance at $5,780 (seen on June 2018). It proves a strong bullish sentiment. Bitcoin is showing 43% rise from the low level of $4,120 (seen on 2nd April) up to $5,920 on Bitstamp. The rally confirms a change in the trend from bearish to bullish in the weeks. It comes in the lead to Blockchain week in New York. In 2017, Bitcoin increased from $1,233 to $1,207 followed by the conclusion of Consensus on 24th May. Again, prices rose 21% following the blockchain week in September 2015 and 3% following the blockchain week in May 2016. In 2018, prices fell from $8,700 to $5,780 in five weeks following the blockchain week in mid-May. It proved that market sentiment is a greater driving force.

4-Hours Chart

April’s bullish sentiment suggested that BTC is set to break the psychological resistance of $6,000 and may increase up to $6,200 in the next few days. The bullish sentiment is supported by a diamond break out on the 4-hour charts. Cryptocurrency has failed three times to secure a UTC close in the last four days. Therefore, we should now focus on UTC close. The sustained rise to $6,200 will be strong if the price closes above $5,780 (on 7th May). If UTC close is below $5,686, there will be a pullback of $5,000 in the short term. It will prove bearish reversal. Thus, the BTC (Bitcoin) price above $6,000 may be short-lived with the long duration chart. Here the question arises of the sustainability of the current gains.

Prospect

Bitcoin’s quick recovery proves fairly strong bully sentiment. Its rise from $5,627 to above the resistance of $5,780 indicates that the bullish sentiment is really strong. The bullish sentiment is supported by a diamond break out on the 4-hour chart. According to April’s bullish close, BTC crosses the resistance of $6,000 and may increase up to $6,200 in the next few days. Be cautious of the bullish sentiment as a pullback to $5,000 will be stronger if the price dropped below $5,686 in next 24 hours. Be cautious of the bullish sentiment because the 3-day chart proves a bearish divergence of trading volumes.

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