Bitcoin price is trading higher at the start of today’s trading. As of this writing, BTCUSD is up over 1.40% or $80.00 from its opening price at $5,904.15. The short-term time frame reveals that the cryptocurrency has been on a short-term uptrend since March 13. This is evidenced by the higher highs and higher lows that BTCUSD has been making in the 1-hour time frame. Bitcoin price is currently testing a confluence of support from the rising trend line (from connecting the lows of March 13 and March 16) and the 200 SMA. Reversal candlesticks have already materialized which could suggest a potential rally to $6,945.00 where BTCUSD topped on March 20.
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However, it’s worth noting that on the daily time frame, bitcoin price looks to have gotten rejected at a critical resistance level. By drawing the Fibonacci retracement tool from the high of March 7 to the low of March 13, we can see that BTCUSD bounced off the 50% Fib level. This price also coincides with previous lows which bitcoin price established in late December to early January. The reversal candlesticks could suggest the presence of sellers. A break of the trend line in the hourly chart could suggest that BTCUSD may soon fall to its March 13 lows at $3,858.00.