Bitcoin has been in a daily uptrend for around 3 weeks now and continues posting gains every single day. The digital asset has found really strong resistance at around the $7,000 area.
BTC was rejected several times from $7,000 and above but the last rejection on April 2 got no bearish continuation which indicates the bulls are still in control.
They are currently trying to break above the same resistance area again and are eyeing up $7,198, the last resistance point set on Binance.
14% Profit Potential For Bulls
If you are an aggressive bull, you could enter a long position right now ($7,094) and set your stop loss below $7,000 awaiting a bull breakout. A more conservative stop loss can be found at $6,753, the daily 26-period EMA.
Another possibility is to set your stop buy at around $7,198 – 7,200 to catch the bull breakout. The only risk here is a fakeout so it’s important to keep an eye on the breakout if it happens.
We do believe it’s very likely to happen as other coins like Ethereum have seen a bull breakout today.
What If BTC Doesn’t Breakout?
Obviously, this is totally possible as well and traders should be prepared for anything. If BTC is rejected heavily today and drops below $7,000 again, bulls will need to be extra careful tomorrow and keep an eye on the bears.
If bears get no continuation, bulls will still be in control but a 4th rejection is likely to be devastating for Bitcoin.