Bitcoin (BTC) saw small gains last night, but the weak move did little to further the bull case.

The target resistance level to beat yesterday (long-term descending trendline) was $8,285. A high volume close (as per UTC) above that mark would have signaled a long-term bullish trend reversal.

The daily chart below shows bitcoin closed yesterday at $8,273 on Bitfinex, meaning the breakout remained elusive. However, a new 24-hour candle (as per UTC) opened above the descending trendline support (seen today at $8,230), creating a false picture of a bullish breakout.

Daily chart

CoinDesk - Unknown

So, while it appears as though the bull breakout has happened, the move is more of a sideways breach (unconvincing breakout) of the long-term trendline hurdle.

As such, the major level to watch out for on the high side is now $8,460 (April 15 high). A convincing move above that level would establish higher highs and higher lows pattern (bullish setup) and would likely confirm a longer-term bull reversal.

The risks of a pullback are still high, given the unconvincing breakout. A failure to hold above the descending trendline support (former resistance) of $8,230 could yield a drop to $7,823 (April 17 low).

The key levels to watch out for in the next day or two are resistance at $8,460 (April 15 high) and support at $7,823 (April 17 low).

As of writing, BTC is changing hands at $8,310 on Bitfinex.

View

  • A daily close (as per UTC) above $8,460 would open up upside towards $9,000–$9,177 (March 21 high).
  • A move below $7,823 would indicate the rally from the April. 1 low of $6,425 has ended and could yield a sell-off to $7,200–$7,000.

Bitcoin image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.