Over the past days since Thursday, we saw Bitcoin safely trading about the $7000 mark. During last Thursday, Bitcoin surged to over $7K, breaking above the critical 50-days moving average line (marked pink on the following daily chart).
Since then, and together with the bullish wind form Wall Street (3% gains on Friday), Bitcoin topped at $7306 (Bitstamp) as of yesterday. Over the past hours, Bitcoin is having a small correction below $7200. However, the critical area from below is still the MA-50 line – currently around $6940, along with the $7K mark.
From the bullish side, we can mention the massive volume of Thursday’s reversal candle. That was the highest volume day since April 2nd. After gaining over $800 in two days, it’s reasonable to see Bitcoin correcting down.
As of now, the bulls will watch the crucial level of $7400 – $7500. The latter contains the monthly high from ten days ago, along with a mid-term descending trend-line. There is always the fear of a double-top pattern that can quickly turn to a bearish setting.
Total Market Cap: $208.4 billion
Bitcoin Market Cap: $132 billion
BTC Dominance Index: 63.4%
*Data by CoinGecko
Key Levels To Watch & Next Possible Targets
– Support/Resistance levels: As mentioned above, Bitcoin reached $7300 and got rejected. From below, the initial support is the prior resistance at $7150 – $7200. Below lies the $7K price area, along with the 50-days moving average line (the pink line on the daily chart). Further below lies $6800, and $6600.
From above, after $7300, lies the significant resistance area at the $7400 – $7500 (April’s high), as discussed above. Further above lies $7700.
– The RSI Indicator: After breaking back above the 50 mark, the RSI looks a bit tired. There is a bit of bearish price divergence on the daily chart.
– Trading volume: As mentioned above, Thursday was the second-highest volume day, month to date. Friday and Saturday saw a decreasing amount of volume, in anticipation of the next big move.
BTC/USD BitStamp 4-Hour Chart
BTC/USD BitStamp 1-Day Chart
Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.