Bitcoin price incredibly rallied above $7,000 on Thursday last week reintroducing the pre-halving rally. The price action was significant following BTC/USD drop from levels slightly above $7,500 to low marginally under $6,500. Prior to the breakout, resistance at $6,800 kept the bulls on their toes. However, the surge above $7,000 extended to levels past $7,300.
At the time of writing, Bitcoin has a market value of $7,177. Buyers are working non-stop to clear the resistance at the 50% retracement level, taken between the last swing high of $10,531 to a swing low at $3,885. ‘Interestingly, Bitcoin price has contain the gains above the 50-day Simple Moving Average (SMA). In other words, a close above the 50-day SMA is a key indicator that more upward price actions are in the offing.
At the same time, Bitcoin is trading within the confines of an ascending channel. While the channel resistance stands in the way bullish advancement, the support continues to be instrumental to Bitcoin’s recovery journey. As long as the channel support stays intact, Bitcoin bulls will have the opportunity to focus on higher levels, especially $8,000 (a milestone investors would like achieved ahead of the May 2020 halving).
From a technical perspective, Bitcoin is slightly in the hands of the bulls. However, the RSI shows that a sideways action (consolidation) is likely to take precedence in the European session. Consequently, a break above the short term resistance at $7,200 could boost Bitcoin towards $7,300 (next hurdle). As far as support areas are concerned, Bitcoin price reversal will find support $7,000, the 50 SMA, the 38.2% Fibo as well as $6,000.
Spot rate: $7,220
Relative change: 85
Percentage change: 1.25%
Trend: Bullish
Volatility: Low
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