- Bitcoin price stalls under $7,900 but bulls looking forward to a pre-halving rally.
- Bitcoin price contains gains within an ascending channel, hinting that the gradual recovery to $9,000 is still on course.
After a period of containing gains above $7,700, Bitcoin bulls renewed their strength on Tuesday, pulling Bitcoin towards $8,000. Unfortunately, the price hit a wall under $7,900 (new seller congestion zone) and put an end to the bullish leg. A weekly high has been formed at $7,874 as BTC/USD flirts with $7,831. At the time of writing, the largest cryptocurrency by market capitalization is facing increased selling pressure especially with the existing trend being strongly bearish. On the other hand, shrinking volatility levels suggests that downward price action could be limited.
BTC/USD daily chart
Glancing upwards $7,900 is the initial resistance. If put in the rear view, buyers are likely to get a boost in tacking the critical resistance at the 61.8% Fibonacci level of the last drop from $10,546 to a swing low of $3,856 which also forms a confluence with the 200-day Simple Moving Average (SMA).
Bitcoin halving will take place in exactly 13 days. Speculations regarding the impact of the halving are increasing tremendously. A pre-halving rally above $8,000 is highly probable. However, the performance following the halving is uncertain as this halving takes place amid a global pandemic, COVID-19. Short term trend indicators such as the RSI show that Bitcoin is still in the hands of the bulls in spite of the resistance at $7,900.
Meanwhile, Bitcoin price continues to trade within an ascending channel. The channel support has been very vital to recovery since the March crash. Apart from the channel support, any reversal in Bitcoin price could find support at $7,800, $7,700 and $7,200.
Bitcoin Intraday Key Levels
Spot rate: $7,831
Relative change: 75
Percentage change: 0.98%
Trend: Strongly bearish