In the world of digital currencies, Bitcoin has always been the focus of much attention. However, the recent volatility of Bitcoin prices has sparked speculation about its future trends. Especially when the risk of a reversal of the upward trend that threatens Bitcoin's small target of $7,000 appears, investors and analysts are nervously watching the changes in the market. This article will delve into the challenges and opportunities facing Bitcoin, analyze the possible reversal risks of its upward trend, and explore investors' strategies to deal with this situation.

The price of Bitcoin has always been a hot topic in the financial market, and its volatility is elusive. However, recently, the price of Bitcoin has gradually risen, even approaching the small target of $7,000. This upward trend has triggered market optimism, and investors are also optimistic about the future development of Bitcoin. However, it is in this optimistic atmosphere that Bitcoin faces the risk of reversal.

First of all, to analyze the risk of a reversal of Bitcoin's upward trend, we need to pay attention to multiple factors in the market. As a virtual currency, the price of Bitcoin is affected by many factors such as market supply and demand, policies and regulations, and investor sentiment. Recently, as some countries have strengthened their supervision of digital currencies, the legitimacy and stability of Bitcoin have been challenged. Coupled with the high market speculation and drastic price fluctuations, these have laid the groundwork for the reversal of Bitcoin prices.

Secondly, as an emerging financial instrument, Bitcoin has a large price volatility, and investment risks cannot be ignored. At the key point of $7,000, investors need to be alert to the possibility of price reversal. Historical data shows that it is not uncommon for Bitcoin prices to soar and plummet. Investors should remain vigilant, do a good job of risk control, and avoid blindly following the trend.

In addition to risks, Bitcoin's reversal also brings investment opportunities. In the process of price reversal, investors have the opportunity to obtain more returns by buying on dips. In addition, as a safe-haven asset, Bitcoin's characteristics of hedging inflation and financial risks make it more attractive during market turmoil. Therefore, for investors who hold Bitcoin for a long time, reversal risks are also an opportunity to reconfigure assets.

When facing the risk of a reversal of Bitcoin's upward trend, investors should remain calm, analyze the market situation rationally, and formulate reasonable investment strategies. Methods such as diversified investment portfolios, strict stop losses, and regular profit-taking can help investors avoid risks and seize investment opportunities. At the same time, timely attention to market dynamics and policy changes, and continuous learning and improvement of their investment capabilities are also aspects that investors should pay attention to.

In general, as an emerging digital currency, Bitcoin has great potential and risks in the market. Faced with the risk of a reversal of the upward trend of the small target of $7,000, investors need to remain vigilant, invest rationally, and adjust their strategies in a timely manner according to market changes. Only by doing a good job of risk management can we be invincible in the Bitcoin market, seize investment opportunities, and realize wealth appreciation. I hope that every investor will overcome all obstacles on the road of Bitcoin investment and reap a lot of wealth and growth.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Bitcoin bulls continue to see $7,000, but the $6,970 resistance and the possibility of a downward breakout from the ascending triangle are weighing on the market’s upward momentum.

Bitcoin (BTC) surged along with traditional markets, which were likely driven by the Senate-approved $2 trillion stimulus bill to provide relief to businesses and workers affected by the coronavirus pandemic. The price of Bitcoin was blocked at $6,959, just a stone’s throw away from $7,000, before retreating to $6,491.

Daily performance of the cryptocurrency market. Source: Coin360

Looking at the shorter timeframe, we can see that the price is simply bouncing between the support and resistance lines of an ascending triangle, with resistance coming from $6,970.

BTC USDT 4-hour chart. Source: TradingView

Although Bitcoin’s pullback today is still making a higher low, once it breaks above the $6,970 resistance line, the price of Bitcoin could surge to the top of the rising wedge trendline at $7,079.

Traders will also notice that the Bollinger Bands have closed in on the 4-hour timeframe as volume has gradually shrunk. This is usually a sign that a big move is brewing.

BTC USD daily chart. Source: TradingView

As mentioned in the previous analysis, considerable resistance is expected at $7,200 and if the market can find effective support, then a bottom in this range would be more favorable for a gradual return to the $8,000 range.

If it falls below the Bollinger Band moving average ($6,646), then a drop to $6,515 to $6,450 is possible. Below that is support at $6,200.

Bitcoin Bullish Scenario

A bullish expected outcome would include Bitcoin breaking above $6,800-6,900 and turning that area into support before breaking out of the ascending triangle, which has a gap visible based on the volume profile at $6,900-7,700.

If the volume breaks above $6,900, the price could attempt a breakout to a higher high above $7,929. With the 50-day and 200-day moving averages hanging overhead, $8,000 could be a significant hurdle to overcome.

Bearish Scenario for Bitcoin

The risk of a breakdown of the ascending narrowing triangle pattern could lead to a revisit to the previously mentioned underlying support levels ($6,515, $6,450, $6,200), and if $6,200 fails to provide effective support, the price could revisit the $5,850-$5,500 range.