Bitcoin Price Analysis: BTC/USD Recovery Undeterred, Is $7,000 The Stepping Stone To $8,000?

24 Mar, 2020

By John Isige

Subscriber

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Bitcoin price remains bullish after finding support at $6,500.
BTC/USD bulls depend on the break above $7,000 to shift the recovery focus to $8,000.

Bitcoin price has been dealing with extreme volatility levels mainly driven by the fear caused by the Coronavirus pandemic. However, the digital asset appears to be gaining resilience based on the recovery moves it pulled on Friday and Monday. Last week, the Bitcoin price broke above a key resistance zone at $6,000. Impressive upside action approached the critical $7,000 zone. Unfortunately, a breakout did not materialize, leaving BTC/USD vulnerable to losses under $6,000.

Bitcoin Price Bullish Scenario

At the time of writing, BTC/USD is trading at $6,576 after adding over 1.5% of gains on Tuesday. The Asian hours have been characterized by increased buying entries, however, it is still not enough to sustain movement towards $7,000.

Generally, Bitcoin price trend remains in the able hands of the bulls. This is emphasized by the up-trending Relative Strength Index (RSI). The indicator has since the crash to levels under $4,000 formed a higher high pattern. With the RSI under the average, room for growth is plenty as long as the buying volume increases steadily throughout the week.

BTC/USD daily chart

The zone at $7,000 has been tested once, making it a critical area. If BTC/USD steps above it, buyers could get a boost as the focus shifts to $8,000. On the other hand, failure to clear the resistance could result in exhaustion of the bulls and a bearish action back to $6,000. Despite the bullish momentum, selling pressure cannot be ignored especially if the 50-day SMA continues to close the gap towards the 200-day SMA.

Bitcoin Key Levels

Spot rate: 6,576

Relative change: 85

Percentage change: 1.20%

Trend: Bullish

Volatility: Shrinking

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.