Following yesterday's bull run, today's quotation moved in a fairly narrow range and trading volumes plummeted.
We expect that prices could rise again to test the EMA200, where there will be a possible retracement towards 7,200.
An overshooting of the EMA200, above 8,000, could bring the price to the highs on the main downtrend line in the 10,000 area.
This last resistance is a very important level, as it is a multi-year resistance area that has been acting as such since 2018, so we believe that it is quite difficult for it to be breached without rejections.
In favor of the bullish teroria we have the 20/50 moving averages in upward tilt and golden formation on the TF 1D, also the momentum is positive, the MACD also and the stochastic is overbought which shows that buyers are ahead.
On the other hand, if the price were to be rejected by the multi-year resistance and slide below the 20-period moving average to below 6,800, the above bullish view would be invalidated, completely changing market sentiment and causing a severe downtrend.
Another event to take into account is the halving that is expected to take place on May 12 and which could affect the price of the cryptocurrency.
History teaches us that this event has always led to a strong bullish movement, but this year the opinions of various experts are conflicting; we believe that at this particular moment of tension in the various global markets may not have the same effect as the two previous events.
We expect that prices could rise again to test the EMA200, where there will be a possible retracement towards 7,200.
An overshooting of the EMA200, above 8,000, could bring the price to the highs on the main downtrend line in the 10,000 area.
This last resistance is a very important level, as it is a multi-year resistance area that has been acting as such since 2018, so we believe that it is quite difficult for it to be breached without rejections.
In favor of the bullish teroria we have the 20/50 moving averages in upward tilt and golden formation on the TF 1D, also the momentum is positive, the MACD also and the stochastic is overbought which shows that buyers are ahead.
On the other hand, if the price were to be rejected by the multi-year resistance and slide below the 20-period moving average to below 6,800, the above bullish view would be invalidated, completely changing market sentiment and causing a severe downtrend.
Another event to take into account is the halving that is expected to take place on May 12 and which could affect the price of the cryptocurrency.
History teaches us that this event has always led to a strong bullish movement, but this year the opinions of various experts are conflicting; we believe that at this particular moment of tension in the various global markets may not have the same effect as the two previous events.