- Bitcoin bulls revive interest in the market as cryptocurrencies battle key barriers.
- Bitcoin bulls have no choice but to break $8,000 resistance or risks diving back to $7,000.
Bitcoin has had an incredible 2020 following the possible bottom at $6,550 in December. The cryptoasset has not only recovered significantly above $7,000, but it has also revived interest among the community and investors at large.
The volatility in Bitcoin price is largely related to the growing speculation with the upcoming May 2020 halving. Investors are taking position while miners increasing activity in readiness for the event that could see Bitcoin hit new all-time highs.
BTC/USD 4-hour chart
Meanwhile, Bitcoin is trading at $7,907 after the shallow recovery on Tuesday fell short of $8,000. Weak support has been established at $7,800. However, other key support areas include $7,600, $7,400, $7,200 and $7,000.
Despite the failure to breach the $8,000 resistance zone, Bitcoins remains strongly bullish. The RSI, for instance, is holding ground above 70. The shallow retreat from highs around 80 suggests that a reversal is imminent in the near term.
On the other hand, with the 50 SMA above the 100 SMA on the 4-hour chart, traders can tell that buying pressure is present. As long as the gap between the two moving averages continues to widen, Bitcoin could eventually hit the levels above $8,000 and correct towards $8,200.
Bitcoin Key Technical Levels
Spot rate: $7,893
Relative change: 105
Percentage change: 1.54%
RSI: Holds the ground within the overbought but shallow retreat hints price reversal.
Resistance: $8,000 and $8,200
Support: $7,800, $7,600 and $7,400
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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