- Bitcoin price reacts in tandem with the stock market and the oil market rebound, stepping above $7,000.
- BTC/USD could settle in a narrow range between $7,100 and $7,200 as sideways trading takes over.
Bitcoin price has been having action-packed weeks recently probably due to the Coronavirus pandemic and the halving in May; one of the most anticipated event in the cryptocurrency universe. Moreover, its correlation with the stock market has kept investors on the edge. For instance, the drop in the price of oil on Monday led to a free-fall in the stock market. Bitcoin once again proved its correlation with the stocks as it retreated from highs above $7,100 to weekly lows at $6,748.
Consequently, with a rebound in the stock market and the price of oil, Bitcoin soared to highs above the critical $7,000 level. At the time of writing, BTC/USD has a market value of $7,123. It is trading above the moving averages in the 4-hour range. Whereby, the 50 SMA is in line to provide support at $7,004 and the 100 SMA at $7,030 in case a reversal comes into play.
Will Bitcoin Clear This Key Resistance?
The biggest task among the bulls is to clear the resistance at $7,200. Sustaining gains above this zone has been an uphill task since the beginning of April. However, it is a tentative support if a rally breaks out towards $8,000. This zone functioned as support during the downtrend in 2019 from the highs in June at $13,800.
BTC/USD 4-hour chart
Meanwhile, the Relative Strength Index (RSI) shows that Bitcoin is in the hands of the bulls but they lack the gas to force a breakout above $7,200. A sideways trading action could take over in the narrow range between $7,100 and $7,200. However, the longer the price stays in this zone the stronger the bear grip gets. Therefore, Bitcoin is not in the clear yet and a return to $6,000 is possible before the halving.
Bitcoin Key Intraday Levels
Spot rate: $7,123
Relative change: -12
Percentage change: -0.21%
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige