Bitcoin (BTC): bullish breakout of resistance at $ 7200 or technical trap?

The bitcoin price exceeds resistance at $ 7,200, it's a bullish technical signal to be confirmed at the end of the week to prevent the risk of bullish trap.

Key technical factors of the article:

• The course of Bitcoin yesterday made an upside breakout of the resistance at $ 7200.
• From a technical point of view, is this a reliable signal or a bullish trap ?

In my previous technical post published on Cryptaut, I described a lateral transition period, the upper part of which was covered by resistances at $ 7200 on the Bitcoin price and $ 190 on Ethereum.

During the trading session on Thursday April 23, the BTC / USD performed a upward breakout of $ 7,200 based on a daily close, is this a reliable signal for the continuation of the upward recovery?

In order to answer this question, we need to review several dimensions of technical analysis and keep in mind the fundamental theme of the moment for the crypto market.

The fundamental theme of the moment is the temporal proximity of the fourth halving in the history of BTC, in 3 weeks. My opinion is that the strong hands support the continuation of the upward recovery from $ 3,850 to create conditions favorable to the halving of the mining premium. The institutional volume is recovering even if we are still far from the records; this point of view remains perfectly subjective but it can support the rise of the BTC towards 10K $ during the next weeks, the technical pivot of long term.

Let’s come to the prism of technical analysis about the resistance over $ 7200.

The positive point is the registration of a daily closing price above $ 7,200, now granting technical support status at this level according to the principle of change of polarity. The volume is partially there, this is still where the shoe pinches.

However, the $ 7,200 is a resistance of weekly dimension, in reality, it is necessary to confirm the technical breakout during the next weekly closing, that is to say Sunday for the OTC BTC market.

Also keep in mind the negative influence of the fall session on Thursday March 12, whose high point is at $ 8000. I think the price of Bitcoin can go "erase" this session, that is to say join the 8K. Then, if the market manages to hold on to the week's highs on Sunday evening, then yes, we will have a reliable bullish technical breakout to target $ 8,500 and $ 10,000.

In the meantime, prudence remains the order of the day with an invalidation threshold below $ 7,000.

Follow Vincent Ganne on Trading View for further analysis on the financial markets. The technical thresholds and the trend indicated above are based on the technical approach "price, momentum, sentiment, ichimoku". The data come from Bitstamp and the graphics of TradingView. You can consult the history of our technical points on cryptocurrencies in click here.

This content is provided for informational purposes only and does not constitute an investment recommendation. We remind you that theinvestment in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are prone to large and unpredictable price swings.