- Bitcoin resumes the uptrend to step into the weekend session positively.
- Prevailing technical levels suggests that Bitcoin’s reversal will last longer.
The cryptocurrency market is welcoming the bulls after an overwhelming couple of days. Bitcoin plunged below $7,800 and gained momentum under $7,500. The losses extended towards $7,300 before a shallow recovery ensued.
It appears that the consolidation above $7,400 for the current breakout hitting on the 23.6% Fib retracement level taken between the last swing high of $8,826.68 to a swing low $7,306.68. The volume is also on the rise as bulls flex their muscles. Trading above the Fib level is likely to pave the way for gains above $7,700.
BTC/USD four-hour chart
The Relative Strength Index (RSI) has just jumped above 50. The correction comes from the levels under 30 when Bitcoin was extremely oversold. If the RSI continues to trend towards 70, the buyers will be encouraged to increase their entries.
On the other hand, the 50 Simple Moving Average (SMA) is extending the gap below the long-term 100 SMA on the four-hour chart. As long as the 50 SMA stays under the 100 SMA, bearish influence will last longer.
As far support is concerned, $7,400 is coming out as a key support area. The major support at $7,300 is also a viable bull congestion zone. Besides, a further correction of $7,000 will find cushioning at $7,200. On the flip side, Bitcoin needs to correct above $7,800 in order to complete shun the bearish zone.
Bitcoin Key Technical Levels
Spot rate: $7,653
Relative change: +208
Support: $7,400 and $7,200
Resistance: $7,800 and $8,000
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