Bitcoin (BTC) breaches key resistance at $7,000 setting the market on a bullish trajectory. The top coin is also on a path to scaling all-time high difficulty levels heading to the halving with estimates of the next difficulty adjustments setting it 9.33% higher than the current difficulty at 13.20 T. Can Bitcoin scale past the $7,400 ever-evading resistance point and set the market on its best uptrend yet post halving?
Bitcoin surpasses $7,000 as difficulty rates hit all-time highs
Could the current reversal in BTC market fortunes be tied to its exploits on the mining development? It pretty much seems the current spike in BTC’s price is heavily connected to the Bitcoin network setting an all-time high (ATH) its latest difficulty adjustment. The difficulty adjustment occurred only 48 hours ago, setting a new record of 13.30 Th/s, which represents a slight 5% increase in the past month.
The price of BTC has appreciated rather gracefully in the past few hours to trade above the psychological $7,000 mark –currently at $7,076. The price bounced off the key support levels provided by the bearish wedge support at $6,800 in the earlier trading hours of the Asian market, representing a 4% intraday hike in BTC/USD pair.
Can Bitcoin hit $8,000 in the coming days?
The spike in price is likely attributed to the global instability in the traditional oil market and growth in Bitcoin mining difficulty rates over the past few days. Furthermore, the upcoming halving is causing rumbles across the markets as debates fly in on whether the price will moon or is doomed following the block reward event.
UFC fighter, Ben Askren, who has been vocal on the crypto market, urged investors to buy the coin and even changing his Twitter user profile to promote the BTC halving. He tweeted,
“BTC is currently approx. $7,000. You can buy as little as .000000001 BTC.”
However, a cryptocurrency analysis firm, Anbessa Capital, warns investors of calling in the bullish run yet as bulls struggle to breach above key resistance levels. According to the analysis, bulls need to push the price above resistance levels at $7,400 to effectively enter a bull run. Confirmation of price closing above the Fibonacci resistance is also important for bulls to set in the market in their favor.
$BTC/USD 1D Coinbase
At least wait till Bitcoin manages to break this strong resistance followed by fib resistance before getting too excited.
The binance alert "Bitcoin over 7000" means nothing. Patience, beware and take care! pic.twitter.com/ESRHLBpea5
— AN₿ESSA (@Anbessa100) April 22, 2020