Bitcoin Price Analysis: BTC/USD Reverses The Downtrend, Is $7,800 Within Reach?

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Bitcoin Price Analysis: BTC/USD Reverses The Downtrend, Is $7,800 Within Reach?

  • 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

BTC/USD price chart
BTC/USD price chart by Tradingview

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

Trend: Bullish

Support: $7,400 and $7,200

Resistance: $7,800 and $8,000

Summary
Bitcoin Price Analysis: BTC/USD Reverses The Downtrend, Is $7,800 Within Reach?
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Bitcoin Price Analysis: BTC/USD Reverses The Downtrend, Is $7,800 Within Reach?
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Bitcoin resumes the uptrend to step into the weekend session positively. Prevailing technical levels suggests that Bitcoin’s reversal will last longer.
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Author: John Isige

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

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John Isige 275 Articles

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

Follow John @