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3 Price Hurdles That Could Complicate a Bitcoin Rally to $6K

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  • Bitcoin is looking north, having closed above the 21-month exponential moving average (EMA) on April 30. Forcing a quick rally to $6,000, however, may be difficult for the bulls, as a number of key resistance levels are lined up in the $5,400–$5,900 range.
  • The short-term outlook will remain bullish as long as the price is holding above the 30-day MA at $5,199. Bitcoin, however, risks falling back to that level in the next 24-hours, according to the short duration charts.
  • A close below the 30-day MA would boost the odds of a head-and-shoulders breakdown and a slide to the 50-day moving average, currently at $4,736.

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 $5,350 on Bitstamp.

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.

Read full article at Coindesk here

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