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After breaking decisively above the important resistance level of $4,100 yesterday, Bitcoin (BTC) has continued to climb and is now nearing its next key resistance level of $4,200 that has proven to be incredibly strong over the past month.
Analysts now expect Bitcoin to incur some major volatility in the near future as it approaches this price level, and one analyst believes that a decisive break above $4,200 could lead BTC to surge towards $4,600.
Bitcoin Continues Climbing After Breaking Above $4,100
At the time of writing, Bitcoin is trading up over 1% at its current price of $4,160. Yesterday was the first time in a long time that BTC was able to break above $4,100 without being swiftly pushed back down, but its strongest level of resistance remains at $4,200.
$4,200 was first established as a resistance level in late-February when Bitcoin rapidly climbed from $3,600 to over $4,200, where it found strong selling pressure that sent it spiraling downwards towards $3,700.
On this past Saturday, this price level was further proven to be a resistance level, as BTC’s price jumped from below $4,100 to slightly above $4,200, which is where it then dropped back to $4,100.
Although this has not yet been established, it is possible that Bitcoin may find itself caught in a fresh trading range between $4,100 and $4,200 in the near future if it continues to find support at the former price and resistance at the latter price.
Financial Survivalism, a popular cryptocurrency trader on Twitter, recently spoke about the important levels of resistance that lie ahead for Bitcoin and noted that a break above $4,200 will likely lead the crypto towards its 200-day EMA, which exists at $4,600.
“Expecting volatility in crypto soon. $BTC is on a weekly green 9 while testing resistance cluster from: horizontal, trendline, & the 200 week EMA. If it makes it through $4,200 then the next major area of resistance would be the 200 day EMA which waits at $4,600,” he explained.
Expecting volatility in crypto soon. $BTC is on a weekly green 9 while testing resistance cluster from: horizontal, trendline, & the 200 week EMA. If it makes it through $4,200 then the next major area of resistance would be the 200 day EMA which waits at $4,600. pic.twitter.com/8Dq51sZB7G
— The Weatherman (@Sawcruhteez) April 1, 2019
BTC May Need to Drop Further Before Surging
Although Bitcoin’s price action is appearing to be somewhat bullish at the moment, one analyst believes that the crypto needs to drop further before finding enough buying pressure to lead it higher.
TraderX0, another popular analyst on Twitter, shared his thoughts on the cryptocurrency’s current price action, explaining that he believes it will “smash down” before the major uptrend begins.
“$BTC – Something I have been thinking for a while… I don’t have any bias as such, but I’m always trying to understand which way price could go and why… I still believe we could wick up to 42 – 43’s… and smash back down… before the major uptrend,” he noted.
https://twitter.com/TraderX0X0/status/1112701388361027589
As the week goes on and Bitcoin’s price action continues to unfold, traders and analysts will gain a better understanding of whether or not $4,200 will continue to prove to be a strong resistance level, and if further losses are imminent.
Featured image from Shutterstock.
