Bitcoin is on a sharp rise in 2020 with price breaching $7,500 USD. Bulls are regaining strength in the market with a third straight green candle on the daily charts setting bullish indicators that signal a possible test of the $7,800 resistance level. A call for entry?
Bitcoin (BTC) is finally taking shape as price shortly spiked above $7,500 USD in the past 24 hours. Following the $400 spike on Jan. 2, from $6,900 to over $7,300 USD (a spike heavily associated with the Iran-US tensions), BTC is showing prospects of a possible bullish momentum as price set higher lows.
After starting the year on a bearish trend that saw the price dip to $6,800s key support levels, BTC/USD hiked to over $7,300 USD in the past 48 hours signaling a possible bottom of the pair. Currently trading at $7,457 USD, a slight retraction from the $7,500 level, BTC bulls are pushing the top cryptocurrency to higher lows with the key resistance level at $7,800 USD, firmly on sight.
Waiting to see the reaction at ~$7,700 area. If we reclaim that, it's very possible we see at least ~$8,500.
No need to be prematurely bullish without a higher high close. pic.twitter.com/eoK1wZOaCX
— Loma (@LomahCrypto) January 5, 2020
Despite still being in a downtrend from the yearly high set in June 2019 at $13,900 USD, BTC/USD recording higher lows signals an upcoming reversal. The price has narrowed through the bearish channel on the higher timeframe channels and a break above the resistance provides a perfect time of entry.
Looking at the daily charts, a breakout above the wedge channel and major resistance looks set in stone as bulls gain strength in the market. Make no mistake though, the price is still in an extended downtrend since the Xi pump in late October. However, a period of sideways trading since late November and a rectangular formation on the chart signals a major breakout ensues on BTC/USD.
A break above resistance at $7,790 USD will usher in a bullish run months leading to the halving as the community and miners anticipate a reduction in the supply to 900 BTC every day. The daily relative strength index (RSI) currently oscillates slightly 50 with a bullish projection further strengthening the chart fundamentals of an upcoming buying pressure in the market.
Entry Point for BTC?
The current bullish indicators on BTC/USD charts provides a suitable entry point for short term traders. The 20-day Bollinger Band is narrowing signaling a mega move for the pair on each side. The mid line (50-day MA) provides support for BTC/USD with a break above the upper band a confirmation of entry for bulls.
However, BTC/USD failure to breach the $7,800 resistance level will see the price turn bearish in coming weeks with the key support levels at $6,500 USD the target for bears.